The RBI would raise the CRR when

inflation is high because of excess demandCorrect answerYour answerthe economy is in a deep slowdownCorrect answerYour answerbanks have too few funds to lendCorrect answerYour answerunemployment is rising fastCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

A higher CRR cuts lending and money supply, which suits a time of too much demand.

Concept: When to raise the CRR
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsEasing and tightening

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The RBI would raise the CRR when

Explanation