Economics · Economy
Consider the following statements: Statement I: It has been argued in policy discussions that inclusion of bank deposits while computing the Credit-Deposit (CD) Ratio may provide a more comprehensive reflection of credit deployment trends. Statement II: A persistent decline in the Credit-Deposit Ratio over time may indicate relatively weaker credit expansion compared to deposit mobilisation. Statement III: In phases of economic uncertainty, households may prefer allocating savings towards financial instruments offering relatively stable returns rather than extending risk-based credit. Which one of the following is correct in respect of the above statements?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Neither Statement II nor Statement III is correct.
- 2Only one of the Statements II and III is correct and it explains Statement I.
- 3Only Statements II and III are correct and only one of them explains Statement I.
- 4All three statements are correct and Statements II and III explain Statement I.✓
Correct answer
All three statements are correct and Statements II and III explain Statement I.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Economy MCQs →Want more practice questions on Economy?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Economy