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In order to control credit_________
  • a)
    Bank rate should be decreased and CRR should be increase
  • b)
    Bank rate should be reduced and CRR should be reduced
  • c)
    Bank rate should be increased and CRR should also be increased
  • d)
    Bank rate should be increased and CRR should be decreased
Correct answer is 'C'. Can you explain this answer?
Most Upvoted Answer
In order to control credit_________a)Bank rate should be decreased and...
Bank rate is the rate at which central bank lends money to the commercial bank. If bank rate will increase, commercial banks will borrow less and so will have less liquidity to provide for loans. CRR is cash reserve ratio. When people deposit money in banks, the bank out of the total deposit keeps a % of the amount with the central bank. So if CRR will increase banks will have to keep a greater %of the total deposit with central bank and will thus have less money to provide loans. In this way the central bank can control money supply in the economy.
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In order to control credit_________a)Bank rate should be decreased and...
Bank rate is the rate at which central bank lends money to the commercial bank. If bank rate will increase, commercial banks will borrow less and so will have less liquidity to provide for loans. CRR is cash reserve ratio. When people deposit money in banks, the bank out of the total deposit keeps a % of the amount with the central bank. So if CRR will increase banks will have to keep a greater %of the total deposit with central bank and will thus have less money to provide loans. In this way the central bank can control money supply in the economy.
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In order to control credit_________a)Bank rate should be decreased and CRR should be increaseb)Bank rate should be reduced and CRR should be reducedc)Bank rate should be increased and CRR should also be increasedd)Bank rate should be increased and CRR should be decreasedCorrect answer is 'C'. Can you explain this answer?
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In order to control credit_________a)Bank rate should be decreased and CRR should be increaseb)Bank rate should be reduced and CRR should be reducedc)Bank rate should be increased and CRR should also be increasedd)Bank rate should be increased and CRR should be decreasedCorrect answer is 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In order to control credit_________a)Bank rate should be decreased and CRR should be increaseb)Bank rate should be reduced and CRR should be reducedc)Bank rate should be increased and CRR should also be increasedd)Bank rate should be increased and CRR should be decreasedCorrect answer is 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In order to control credit_________a)Bank rate should be decreased and CRR should be increaseb)Bank rate should be reduced and CRR should be reducedc)Bank rate should be increased and CRR should also be increasedd)Bank rate should be increased and CRR should be decreasedCorrect answer is 'C'. Can you explain this answer?.
Solutions for In order to control credit_________a)Bank rate should be decreased and CRR should be increaseb)Bank rate should be reduced and CRR should be reducedc)Bank rate should be increased and CRR should also be increasedd)Bank rate should be increased and CRR should be decreasedCorrect answer is 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
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