Question
In the context of Indian economy, which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’?
Select the correct answer using the code given below.
- To enable the Central Bank to control the amount of advances the banks can create
- To make the people’s deposits with banks safe and liquid
- To prevent the commercial banks from making excessive profits
- To force the banks to have sufficient vault cash to meet their day-to-day requirements
Select the correct answer using the code given below.
Answer: Option C
Answer: (c)
Because Reserve Requirements are designed as “precautionary measures” and not to stop banks from “excessive” profit.
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Answer: (c)
Because Reserve Requirements are designed as “precautionary measures” and not to stop banks from “excessive” profit.
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