Practicing Success
During festive season, the currency deposit ratio ______. |
decreases increases has no impact on it first decreases then increases |
decreases |
The correct answer is Option (1) → decreases Currency deposit ratio: The ratio of money held by the public in currency to that held as deposits in commercial banks. During festive seasons, people tend to withdraw more cash from banks for shopping, gifts, and other expenses. This increased demand for currency relative to deposits reduces the currency deposit ratio. |