what happens in the stockmarket when RBI changes the CRR
rates(REPO RATES)
Answers were Sorted based on User's Feedback
Answer / purna and kuldeep
In stock market equation based on demand and supply CRR
related to liqudity of bank's curenceies flow.so if CRR
will increase liquidity crunch created in market that means
market become bearish.
In case of decrease in CRR it will affect the market
postively means the market will be bullish due to huge flow
of funds.
| Is This Answer Correct ? | 16 Yes | 3 No |
Answer / bala
The cut in CRR pumps in the liquidity to the market. Cash
Reserve Ratio is the ratio at which each bank keep their
cash reserve with RBI. When this ratio is reduced, the
excess cash is released by RBI and they are indirectly
pumped into the Stock market, which will help to reduce the
crunch situation
| Is This Answer Correct ? | 9 Yes | 2 No |
Answer / rohit.lala
crr changes the market and when rbi injects money in
market it booms market and it increases stock prices.
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / gulfashan ambarin
CRR is an instrument of monetary control and its level is determined by monetary authority, taking into consideration the overall economic situation.
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / samanth
CRR(CASH RESERVE RATIO) Bank collecting deposits for customers daily this amount bank are deposits in to RBI is called CRR recently CRR RATIO IS 4%
| Is This Answer Correct ? | 0 Yes | 0 No |
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