Economics · Banking and Monetary Policy
Which of the following will reduce a commercial bank's credit creation capacity?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1An increase in the cash reserve ratio mandated by the central bank✓
- 2A bank-sponsored educational campaign for saving
- 3An increase in locker rentals charged by the bank
- 4A reduction in the number of cheque leaves issued to customers
Correct answer
An increase in the cash reserve ratio mandated by the central bank
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