Answer Posted / shruti

hi Tarun..

yeah Shyamal rightly said that to check inflation they use
the measure of increasing CRR.. n now as you said Decrease
in CRR should decrease inflation... that isnt right.. coz
CRR and RR both have indirect relation with inflation.. see
if the CRR decreases, the money flow in market would
increase n that in turn would increase the demand for
goods.. n you know if demand increase the supply then good
would become dearer.. so inflations goes up.. n vice
versa.. so Increase CRR to reduce inflation n reduce CRR to
increase inflation..


n Shyamal.. i m from commerce field but havent as such
prepared for any topic.. you suggest if what topics should
we cover besides the ones being discussed here.. as i guess
we are probing into too deep ... there would be just a few
general questions from our commerce subjects too..

do suggest me what next to do...


alright .. n Tarun if the concept is still not clear, then
do make it clear as inflation is a good topic..n if i made
mistake somewhere then plz correct me..


alright


take care

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