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Q: What happens when reserve bank of India lowers the cash reserve ratio?
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Related questions

What is the current Cash Reserve Ratio in India?

7%


What country was introduced the cash reserve ratio?

Canada India


Banking sector in India?

it means compulsory reserve ratio.


What is current cash reserve ratio?

The current cash reserve ratio (CRR) in India set by the RBI is 5% as on 21st august, 2009.


Under a fractional reserve banking system the amount of money loaned out can only increase if what happens?

The required reserve ratio is lowered.


What happens to the credit multiplier when the cash reserve ratio is increased?

The credit multiplier decreases.


What is current CRR in INDIA?

Cash reserve ratio...This is stipulated % of deposits that the bank has to maintain in Cash with RBI.Current CRR =5.5%


What is the cash reserve ratio in India?

Cash Reserve Ratio or CRR in India is the amount of money that every bank has to deposit with the RBI per customer. Every time a customer deposits cash to the bank, the bank has to correspondingly deposit a portion of that cash to the RBI. RBI decides this percentage of money that each bank has to deposit with it.


What is variable reserve ratio?

The variable cash reserve ratio is new method of credit control used by central banks in recent times. The term variable ratio refers to the minimum reserves with the central bank by the commercial banks. As per section 42 (1) of the reserve bank of india, 1934, every scheduled bank has to maintain a minimum cash balance as reserve to be calculated as a percentage on their time and demand liabilities. Variable reserve ratio was used as one of the credit control methods. This methods was suggested by keynes in 1930. This method was first introduced by federal Reserve System of USA in 1935.


Credit reserve ratio?

not sure


How do you calculate reserve ratio?

multiplication


What is Reserve requirement ratio?

The Required Reserve Ratio is the percentage/fraction of required reserves that should be held for every dollar of deposits in a depository institution that is required by the Federal Reserve.