Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:
Which of the following are true- a) More the CRR less is the money multiplier b) CRR is the percentage of cash or cash equivalent out of total deposits, in the balance sheet of a bank.
Options:
Both a and b are true
a is true, b is not
b is true, a is not
Both a and b are false
Correct Answer:
a is true, b is not
Explanation:
CRR is the amount a bank keeps with central bank.