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Increasing the (reserve requirement) ratios reduces the volume of deposits that can be supported by a given level of reserves and, in the absence of other actions, reduces the money stock and raises the cost of credit. so its correct
I fully agree with the answers been added by EXPERTS....THanks
Yes agree with the statement.
correct I agree with statement
CRR is cash reserve ratio, it is the amount of money from every loan which a back has to set aside and deposit with the Reserve Bank.
Eg: The CRR is 5%, a bank has to deposit USD 5 with the reserve bank for every USD 100 it lends.
The money set aside for CRR does not earn any interest, hence the higher the CRR the higher will be the cost for the bank and subsequently borrowers to whom the bank lends money.
Concluding from the above the we can say that your statement is correct.
Yes correct..............................
yes i agree with above words
That's a correct statement.
Thanks
Right .... i agree with statement
Yes Statement is right ... Nothing to add !
Mr. Vikas''s answer was clear about that.
Thank You
Yes. Agree with the answer of Mr. Khalid Gaffar. Thanks.
