how improvement in banking habits of …
CBSE, JEE, NEET, CUET
Question Bank, Mock Tests, Exam Papers
NCERT Solutions, Sample Papers, Notes, Videos
Related Questions
Posted by Sakshi Singh 2 months, 2 weeks ago
- 1 answers
Posted by Dipika Sharma 1 year, 3 months ago
- 0 answers
Posted by Shruti Singh 1 year, 3 months ago
- 0 answers
Posted by Naman Jain 1 year, 2 months ago
- 1 answers
Posted by Nandita Sharma 1 year, 3 months ago
- 1 answers
Posted by Niyati Garg 1 year, 2 months ago
- 0 answers
Posted by Mehar Ansari 1 year, 3 months ago
- 0 answers
Posted by Rijum Karlo 1 year, 3 months ago
- 0 answers
myCBSEguide
Trusted by 1 Crore+ Students
Test Generator
Create papers online. It's FREE.
CUET Mock Tests
75,000+ questions to practice only on myCBSEguide app
Gaurav Seth 4 years, 9 months ago
When banking habits of people improve, they start holding less money as cash-in-hand. Instead, more and more money is deposited with the commercial banks. Accordingly, cash reserves of the commercial banks start rising. Higher cash reserves of the banks enable them to deposit more funds with the RBI as CRR deposits. If CRR remains constant, higher CRR-deposits with the RBI give the commercial banks legal authority to create more credit by way of loans /credit. Accordingly, availability of credit from the commercial banks is increased.
0Thank You