Multiple choice

At the time of depression, it is advisable to _____ the CRR.

  1. increase

  2. decrease

  3. stabilize

  4. fluctuate
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is advisable to decrease the cash reserve ratio at the time of depression so that the commercial banks may be able to make more advances. At the time of hyper inflation, it should be decreased.

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