Giving reasons, state whether the statements are true or false.Increase in statutory liquidity ratio adversely affects the capacity of commercial banks to create credit.

Giving reasons, state whether the statements are true or false.Increas

1.	Giving reasons, state whether the statements are true or false.Increase in statutory liquidity ratio adversely affects the capacity of commercial banks to create credit.
Answer» True. An increase in statutory liquidity ratio reduces the excess reserves of commercial banks and limits their credit creating power.

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Giving reasons, state whether the statements are true or false.Increase in statutory liquidity ratio adversely affects the capacity of commercial banks to create credit.

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