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Rahul Asked :

29-05-2021 Indian Economy

Q. If RBI reduces the cash reserve ratio, what will happen to the credit creation?

A. There will be no impact
B. It will decrease
C. It will increase
D. None of the above


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Dapzoi Verified
Commented on 2021-05-30 17:02:02 (IST)
Answer - C. It will increase

The cash reserve ratio is lowered by the RBI, its impact on credit creation will be to increase it.