Economics · Money Supply and Banking
With reference to the Reserve Ratio in the banking system, consider the following statements: I. It refers to the proportion of deposits that banks are required to keep as reserves. II. An increase in the reserve ratio generally leads to an expansion of credit in the economy. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Neither I nor II
- 2Both I and II
- 3II only
- 4I only✓
Correct answer
I only
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