If the cash-reserve ratio is lowered by the Central bank, what will be its effect on credit creation?

Related MCQs

• The RBI uses the following instruments for quantitative central of credit: (i) Cash Reserve Ratio (ii) Bank Rate (iii) Open Market Operations (iv) Margin Requirements Choose your answer from:
• Self-reliance in the economic context implies that a country: 1. meets its demands for all goods and services from its domestic production 2. exports some of its goods but does not need to import anything 3. has sufficient foreign exchange reserves to buy all its needs 4. meets its demand for certain vital goods and services from its domestic production
• Consider the following statements: [IAS 2004] 1. The National Housing Bank, the apex institution in housing finance in India, was set up as a wholly owned subsidiary of the Reserve Bank of India 2. The Small Industries Development Bank of India was established as a wholly owned subsidiary of the Industrial Development Bank of India Which of the statements given above is/are correct?
• As per the reports published- in various journals and newspapers the 'small borrowers' in rural areas still prefer to take informal route for their credit needs. Which of the following is the 'informal route' of credit in financial sector? [Punjab & Sindh Bank 2011]
• As per the reports published in the newspapers the banks, particularly public sector banks are tying up with various rating agencies for providing a qualitative assessment of the credit needs of the borrowers. Which amongst the following is/are such credit rating agencies in India? [Punjab & Sindh Bank 2011] (A) CARE (B) CRISIL (C) ULlP
• Which of the following are the functions of the Central Bank of India? [Railways 1992] 1. Regulation of currency and flow of credit system 2. Maintaining exchange value of rupee 3. Formulating monetary policy of India 4. Supervisory powers over the indigenous bankers and leasing companies
• Which of the following could be said to have prevented the 'trickle down' effects in Indian economy? 1. Increased dependence of agriculture on purchased inputs and privately managed irrigation 2. More employment of labour by larger landholding farmers 3. Lowered participation of women in agricultural workforce due to new technology 4. The failure of the Green Revolution
• Consider the following statements: [IAS 2004] 1. The loans disbursed to farmers under Kisan Credit Card Scheme are covered under Rashtriya Krishi Beema Yojna of Life Insurance Corporation of India. 2. The Kisan Credit Card holders are provided personal accident insurance of Rs.50000 for accidental death and Rs. 25000 for permanent disability. Which of the statement given above is/are correct?
• Which of the following organisations prepare rural credit plans on annual basis for all districts in India, which in turn form the base for annual credit plans of all rural financial institutions? [RBI Grade B Officer 2011]
• Which among the following sectors received the largest Central plan outlay in the last few Central Government annual budgets? [CDS 2002]