Economics · Monetary Policy
The Cash Reserve Ratio (CRR) maintained by commercial banks:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Is exactly identical in definition and deployment to the Statutory Liquidity Ratio (SLR)
- 2Is maintained in the form of physical cash vault storage inside the banks
- 3Has no transmission effect on controlling inflation in the economy
- 4Directly influences the credit creation capacity of commercial banks✓
Correct answer
Directly influences the credit creation capacity of commercial banks
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