(The figures in this questions are imaginary). We suppose that Cash Reserve Ratio (CRR) in countrys economy is 10%. The

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Q 1588078807.     (The figures in this questions are imaginary). We suppose that Cash Reserve Ratio (CRR) in countrys economy is 10%. The banking system wish a cash deposits of Rs. 1000 Crore, creates total deposits of Rs. 10,000 Crores. The Reserve Bank wishes that bank should create more deposits. Which among the following step will be taken by the Reserve Bank?



A

It will lower the Cash Reserve Ratio

B

It will raise the Cash Reserve Ratio

C

It will increase the Margin Requirements

D

It will start selling Government Securities

E

None of the above

HINT


Solution
(Provided By a Student and Checked/Corrected by EXXAMM.com Team)

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