Golgappa.net | Golgappa.org | BagIndia.net | BodyIndia.Com | CabIndia.net | CarsBikes.net | CarsBikes.org | CashIndia.net | ConsumerIndia.net | CookingIndia.net | DataIndia.net | DealIndia.net | EmailIndia.net | FirstTablet.com | FirstTourist.com | ForsaleIndia.net | IndiaBody.Com | IndiaCab.net | IndiaCash.net | IndiaModel.net | KidForum.net | OfficeIndia.net | PaysIndia.com | RestaurantIndia.net | RestaurantsIndia.net | SaleForum.net | SellForum.net | SoldIndia.com | StarIndia.net | TomatoCab.com | TomatoCabs.com | TownIndia.com
Interested to Buy Any Domain ? << Click Here >> for more details...


How CRR rate hike will help to reduce Inflation rate.



How CRR rate hike will help to reduce Inflation rate...

Answer / deveshvarshney

CRR rate is a rate at which commercial banks has to keep
their % portion of total funds with the RBI. When RBI hikes
the CRR rate, banks has to keep more with the RBI, so the
balance in hands of commercial banks reduces..So the amount
which a bank cud lend will be less now in the hands of
borrowers....as a result the liquidity will reduce and
people demand for goods will reduce and when the demand
will reduce prices of commodities will come down....and
finally inflation will come down....so whenever govt/RBI
takes any decision for sucking the liquidity, it means it
wants to curb the inflation....

Is This Answer Correct ?    5 Yes 0 No

Post New Answer

More General Knowledge_Current Affairs Interview Questions

The Governor of a state is appointed by the president on the advice of the ? a) Chief Minister b) Chief Jutice c) Prime Minister d) Vice President

1 Answers  


Bee dance are meant for 1 Communication 2 Recreation 3 Courtship 4 None of these

2 Answers  


Feeding of colostrums is important for young calves because 1 It is tasty 2 It contains iron 3 It contains antibodies 4 It supplies growth proteins

1 Answers  


the sole power to control the expenditure of the government rests with

1 Answers  


The Preamble to the Constitution of India was adopted by the Constituent Assembly (a) On the first day of its meeting (b) Lon the day the Fundamental Rights were adopted (c) On the day the Directive Principles of State Policy were approved (d) After the full draft of the Constitution was approved

2 Answers  


Who said, ?The Muslims were fools to ask for safeguards and the Hindus were greater fools to refuse them?? (a) Gandhiji (b) Maulana Mohammed Ali (c) Abul Kalam Azad (d) Jawaharlal Nehru

5 Answers   WBCS West Bengal Civil Service,


The world?s largest (3,500 MW) gas-based power generation project is being set up at Dadri in Ghaziabad (UP) by which of the following companies ? (a) NTPC (b) Reliance Industries (c) ONGC (d) Kairns Energy

2 Answers  


Gresham?s law in Economics relate to (1) Supply and demand (2) Circulation of currency (3) Consumption of goods (4) Consumption and distribution of goods and services

1 Answers  


. Which one of the following crops enriches the nitrogen content in soil? (a) Potato (b) Sorghum (c) Sunflower (d) Pea

6 Answers   AFCAT, Indian Air Force, Lakme, RRC Railway Recruitment Cell, SSC,


The earliest inscriptions relating to the history of Andhra Pradesh are in this language: (1) Tamil (2) Sanskrit (3) Telugu (4) Prakrit

2 Answers  


The Communist Party of the Chinese People?s Republic was founded by: (a) Huo Kua Fenge (b) ChiangKai Shek (c) Chou-En-Lai (d) Mao-Tse-Tung

1 Answers  


Indian Military Academy is situated in: (a) Pune (b) Dehradum (c) Patna (d) Jabalpur

3 Answers  


Categories