Economy, asked by sameer99923, 6 months ago

how does central bank central credit creation by crr and bank rate

Answers

Answered by milinda53
1

Answer:

An increase in CRR, would mean that banks would be required to keep a greater portion in form of deposits with the central bank. This implies that the commercial banks are left with lesser amount of funds to lend out. Hence, the lending capacity of the banks reduces, leading to fall in the money supply.

Similar questions