Question

(A) Fill in the blanks:
(a) During recession time CRR is​

Answer 1

Answer:

Definition: Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. CRR is set according to the guidelines of the central bank of a country.

Answer 2

During recession time CRR is​ decreased

• The term CRR stands for Cash Reserve Ratio
• It is the percentage of a commercial bank's total deposits that it is required to ideally maintain as the total cash reserves with the central bank.
• By lowering this ratio, commercial banks are required to keep less cash with the central bank.
• increasing their credit creation ability and, as a result, the money supply in the economy, which helps to alleviate the recession.