McqMate
Q. |
The Cash Reserve Ratio is a tool of : |
A. | Monetary policy |
B. | Tax policy |
C. | Agricultural policy |
D. | Fiscal policy |
Answer» A. Monetary policy | |
Explanation: Cash Reserve Ratio (CRR) is a specified minimum fraction of the total depositsof customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. CRR is a crucial monetary policy tool and is used for controlling money supply in an economy. |
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