Question

Leading Position of Increasing Cash Reserve Ratio
Increase in Cash Reserve Ratio (CRR) leads to, 1. Increase in bank credit 2. Decrease in bank credit 3. Constant bank credit 4. Excess bank credit.

Answer 1

Increasing Cash Reserve Ratio means the banks have to hold more amount of money (a higher percentage of deposits) in the bank itself as the reserve.

So it leads to  (2) decrease in bank credit.

Answer 2

this is answer of this question