Multiple choice

The effect of increase in CRR will be reduced or nullified, if

  1. bank rate is reduced

  2. securities are sold in the open market

  3. SLR is increased

  4. people do not borrow from non-banking institutions

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

 The effect of increase in CRR will be reduced or nullified, if bank rate is reduced