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CRR is scrapped as legal requirement …

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CRR is scrapped as legal requirement then bank can create unlimited amount of money suppy?

    • Posted by Charu Singh 7 years, 4 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Parerna Rai 4 years ago

    No, even if CRR is scrapped as a legal requirement , the commercial banks must continue to hold some cas reservea as a percentage of their demand deposits . Because in the absence of these reserves the bank may sink into 'crises of confidence'

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