Question

Q1. Assertion (A): RBI decreases the cash reserve ratio to increase the flow of credit in the economy.
Reason (R): Because it decreases the credit giving capacity of commercial banks.

Q2. Assertion (A): RBI is the banker of all commercial bank of the country. Reason (R): Holds a part of cash reserves of banks.​

Answer 1

Explanation:

1. option a

2. option c

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