Economics · Banking and Monetary Policy
Which among the following statements is incorrect?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Lowe r the Statutory Liquidity Ratio (SLR), higher will be the liquidity in the system.
- 2Higher the Cash Reserve Ratio (CRR), lower will be the liquidity in the system.
- 3Lower the Cash Reserve Ratio (CRR), lower will be the liquidity in the system.✓
- 4An increase in bank rate will decrease the money supply.
Correct answer
Lower the Cash Reserve Ratio (CRR), lower will be the liquidity in the system.
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