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  9. Q308

RRB Junior Engineer / DMS / CMA 2024 · Question 308 of 730

What is the primary reason for a central bank to increase the reserve requirement ratio of commercial banks?

  1. ATo decrease the money supply in the economyCorrect
  2. BTo increase the money supply in the economy
  3. CTo decrease the profitability of commercial banks
  4. DTo encourage banks to lend more

Answer: A. To decrease the money supply in the economy

Official answer key verified. Detailed explanation coming soon.

Source: Railway Junior Engineer 2024 Answer Key compilation (English) — testranking.in (Gagan Pratap) · reliable-secondary

← Q307View full paper (730 questions)Q309 →

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