Economics · Monetary Policy
Consider the following statements regarding monetary policy instruments in India: 1. An increase in the Cash Reserve Ratio (CRR) reduces the credit creation capacity of commercial banks. 2. The Repo rate is a long-term lending rate of the RBI. 3. Open Market Sale of government securities by the RBI reduces liquidity in the banking system. 4. High-Powered Money includes demand deposits held by the public. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11 and 3 only✓
- 21, 3, and 4 only
- 31 and 4 only
- 42 and 3 only
Correct answer
1 and 3 only
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