Mcq from LRR, CRR And SLR q.5
Dear Student,
Option (a) is correct answer
i.e.Both assertion and reason are true and reasons the correct explanation to the assertion
As we know that Money multiplier =1/CRR
So higher the CRR lower will the capacity of banks to create credit, as CRR and money multiplier have inverse relationship with each other.
Regards
Option (a) is correct answer
i.e.Both assertion and reason are true and reasons the correct explanation to the assertion
As we know that Money multiplier =1/CRR
So higher the CRR lower will the capacity of banks to create credit, as CRR and money multiplier have inverse relationship with each other.
Regards