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Which of the following statement/statements qualifies/qualify as valid in connection with the banking mechanism in India ? I. Increasing the Cash Reserve Ratio (CRR) will result in increasing credit creation. II. Cash Reserve Ratio (CRR) applies only to the new deposit base while the Incremental Cash Reserve Ratio (ICRR) specifically targets the new borrower lending base. III. 'Tenor Premium' is an important component in the calculation of the Marginal Cost of Funds based Lending Rate (MCLR). IV. Marginal Standing Facility (MSF) is used as a long-term policy rate and is generally lower than the Bank Rate. Select the correct answer using the codes given below :
Correct Answer: (b)
Official keyThis question appeared in the APPSC Prelims 2024 examination (GS (Group-I)). It is Question 77 out of 386 questions in this paper. Section: Indian and Andhra Pradesh Economy and Planning.
This question was part of the APPSC Prelims 2024 (GS (Group-I)). The APPSC Prelims examination tests candidates on general studies, current affairs, and aptitude through multiple-choice questions.
Practice previous year questions from all APPSC Prelims papers and compare patterns with UPSC Prelims PYQ to identify overlapping topics.