To fight deficient demand, the RBI would

raise the CRRCorrect answerYour answerraise the SLRCorrect answerYour answercut the CRRCorrect answerYour answersell government securitiesCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

A lower CRR frees funds for lending and raises the money multiplier, which supports spending.

Concept: CRR and deficient demand
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsCRR and SLR

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Ten questions from The Central Bank & Monetary Policy, at your own pace.

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To fight deficient demand, the RBI would

Explanation