Economy, asked by Vermanancy, 5 months ago

Explain the relation between credit creation and cash reserve
ratio with example?

Answers

Answered by vaishalikale1501

4

Answer:

Cash Reserve Ratio (CRR) – Banks know that all depositors will not withdraw all deposits at the same time. Therefore, they keep a fraction of the total deposits for meeting the cash demand of the depositors and lend the remaining excess deposits. ... These reserves are used for loans and credit creation.

Explanation:

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Answered by vbalakrishnan709

2

Answer:

Cash Reserve Ratio (CRR) – Banks know that all depositors will not withdraw all deposits at the same time. Therefore, they keep a fraction of the total deposits for meeting the cash demand of the depositors and lend the remaining excess deposits. ... These reserves are used for loans and credit creation

Explanation:

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