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Question 35Asked in RRB JE CBT-1, 17 Dec 2024, Shift 2 (12:45 PM)

What is the primary reason for a central bank to increase the reserve requirement ratio of commercial banks?

  1. ATo decrease the money supply in the economy
  2. BTo increase the money supply in the economy
  3. CTo decrease the profitability of commercial banks
  4. DTo encourage banks to lend more
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Correct answer: (A) To decrease the money supply in the economy

From RRB JE CBT-1 PYQ 17 Dec 2024, Shift 2 (12:45 PM)

This is question 35 of RRB JE CBT-1 PYQ 17 Dec 2024, Shift 2 (12:45 PM). See all questions of this paper with answers, or attempt the paper as a timed online test to get your score and all-India rank.