Question

Which reference to Cash Reserve Ratio (CRR) which of the following statements is/are correct?

I. CRR is a reserve requirement that requires banks to maintain in the form of gold cash or
government securities with itself
II. When the RBI lowers CRR, it is said to follow an expansionary monetary policy Select the correct
answer from the codes given below
a) 1 only
b) 2 only
c) both 1 and 2
d) neither 1 and 2

Answer 1

Answer:

1 only is correct statement