When RBI increases the cash reserve ratio (CRR), it will
A. Decrease money supply in the economy
B. Increase money supply in the economy
C. Increase supply initially but decrease automatically later on.
D. No impact on money supply in the economy
Answer:A
When RBI increases the cash reserve ratio (CRR), it will
A. Decrease money supply in the economy B. Increase money supply in the economy C. Increase supply initially but decrease automatically later on. D. No impact on money supply in the economy