Statement 1: Reserve Bank of India keeps a certain percentage of deposits of commercial banks as reserve to avoid too much lending to public.

Statement 2: The reserve deposit ratio acts as a deterrence to the amount of credit created by the commercial banks.


(a) Statement 1 is true and Statement 2 is false

(b) Statement 2 is true and Statement 1 is false

(c) Both the Statements are true

(d) Both the statements are false

Anurag Pathak Changed status to publish January 6, 2024
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