Question

Decrease in Cash Reserve Ratio will lead to
(a) Fall in money supply
(b) No change in money supply
(c) Rise in money supply
(d) Fall in general price level​

Answer 1

Answer:

I think it is D

D) fall in general price level

Answer 2

Explanation:

The CRR and availability of funds with the banks are inversely proportional to each other i.e. when RBI increases the Cash Reserve Ratio, it leads to lesser funds at disposal with banks. Likewise decreased Cash Reserve Ratio means increased funds at disposal with banks.