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  9. Q40

CGPSC 2017 · Question 40 of 100

When RBI announced on increase in Cash Reserve Ratio (CRR) then what does it mean?

Economy

  1. AThe Union Government will have less money to lend
  2. BThe RBI will have less money to lend
  3. CThe commercial bank will have less money to lendCorrect
  4. DAll of the above
  5. ENone of these

Answer: C. The commercial bank will have less money to lend

Explanation

The question asks about the implications when the Reserve Bank of India (RBI) announces an increase in the Cash Reserve Ratio (CRR). Understanding CRR and its role in monetary policy is key to answering this.

Source: CGPSC 2017 official paper

← Q39View full paper (100 questions)Q41 →

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