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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