[PPSC Cooperative Inspector Society 2022]

28. When the Reserve Bank of India announces an increase of the Cash Reserve Ratio, what does it mean ?

1. The commercial banks will have more money to lend

2. The commercial banks will have less money to lend

3. The Reserve Bank of India will have less money to lend

4. The Union Government will have less money to lend

Correct Answer :

The commercial banks will have less money to lend