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What is legal reserve ratio? How …

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What is legal reserve ratio? How does it influence the process of credit creation?

    • Posted by Hardik Kumar 5 years, 8 months ago

    CBSE > Class 12 > Economics
    • 3 answers

    Manvi Gupta 5 years, 8 months ago

    The amount kept by the bank from the public deposit is termed to be legal reserve ratio. If legal reserve ratio is more credit would be less and if it is low credit would b high

    0Thank You

    Jaya Kathuria 5 years, 8 months ago

    Amount of reserve that a bank has to keep with itself If LRR increases then the bank will be discouraged to provide credit and viceversa

    0Thank You

    Aleena Mariam John 5 years, 8 months ago

    The banks are required to keep a minimum amount as there reserve for further need it is called LRR

    0Thank You

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