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| 1. |
the reserve bank of india increased the cash reserve ratio by 0.25 basis points to overcome the inflationary trends in the economy. identify the dimension of business environment highlighted in the given statement |
| Answer» CORRECT OPTION isAThe commercial banks will have LESS money to lend CRR refers to the percentage of deposits banks have to keep as reserve (in CASH). This reserve sum is not available for banks for lending and thus if the CRR increases, banks will have less money to lend. | |