- CRR is a monetary policy tool used by the RBI. - Increase in CRR reduces the loanable funds of commercial banks. - This is a measure to control liquidity in the banking system.
When the RBI announces an increase in CRR, it means
Asked in WBCS Main Paper 5 2022 · Topic: Money & Banking (Monetary Policy: Objectives, Instruments (quantitative and qualitative), and Transmission Mechanism)
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Answer: C. The Commercial banks will have less money to lend.
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