Economics · Monetary Policy
What is the immediate macroeconomic effect when there is a decrease in the Cash Reserve Ratio (CRR) by the central bank?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A structural contraction of credit availability
- 2A contraction or reduction in the overall money supply
- 3An increase in commercial banks' lendable resources✓
- 4An increase in commercial bank interest rates
Correct answer
An increase in commercial banks' lendable resources
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