state gov APPSC (ఆంధ్రప్రదేశ్) Group 2 (Pre + Mains) Mock Test 2023 General Knowledge Economy Money and Banking
Consider the following statements about Cash Reserve Ratio (CRR):
- Cash Reserve Ratio (CRR) refers to the percentage of deposits banks have to keep as reserves (in cash).
- CRR is used by many nationalized banks to control the flow of money in the economy.
- When the inflation is high, RBI decreases the CRR hence the banks are left with a lesser amount of money that can be lent as loans.
Which of the above-mentioned statement/s is/are correct?
1
Only 1
2
Both 1 and 2
3
Both 1 and 3
4
All of the above