Economy, asked by mahekcharaniya28, 6 months ago

decrease in cash reserve ratio will lead to​

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Answered by Anonymous
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ᴡʜᴇɴ ᴛʜᴇ ғᴇᴅᴇʀᴀʟ ʀᴇsᴇʀᴠᴇ ᴅᴇᴄʀᴇᴀsᴇs ᴛʜᴇ ʀᴇsᴇʀᴠᴇ ʀᴀᴛɪᴏ, ɪᴛ ʟᴏᴡᴇʀs ᴛʜᴇ ᴀᴍᴏᴜɴᴛ ᴏғ ᴄᴀsʜ ᴛʜᴀᴛ ʙᴀɴᴋs ᴀʀᴇ ʀᴇǫᴜɪʀᴇᴅ ᴛᴏ ʜᴏʟᴅ ɪɴ ʀᴇsᴇʀᴠᴇs, ᴀʟʟᴏᴡɪɴɢ ᴛʜᴇᴍ ᴛᴏ ᴍᴀᴋᴇ ᴍᴏʀᴇ ʟᴏᴀɴs ᴛᴏ ᴄᴏɴsᴜᴍᴇʀs ᴀɴᴅ ʙᴜsɪɴᴇssᴇs. ᴛʜɪs ɪɴᴄʀᴇᴀsᴇs ᴛʜᴇ ɴᴀᴛɪᴏɴ's ᴍᴏɴᴇʏ sᴜᴘᴘʟʏ ᴀɴᴅ ᴇxᴘᴀɴᴅs ᴛʜᴇ ᴇᴄᴏɴᴏᴍʏ.

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