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Economics › RBIXLiquidity Management
When the Reserve Bank of India announces an increase of the Cash Reserve Ratio, what does it mean?
(a)
The commercial banks will have less money to lend
(b)
The Reserve Bank of India will have less money to lend
(c)
The Union government will have less money to lend
(d)
The commercial banks will have more money to lend
(A)
Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government ?
Cash Credit Ratio
Debt Service Obligation
Liquidity Adjustment Facility
Statutory Liquidity Ratio
(D)