Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. CRR is set according to the guidelines of the central bank of a country. CRR controls-

Options

A. (a)It cheaper for banks to borrow money
B. (b)Is a tool, which central bank uses for short-term purposes
C. (c)Greater control to the central bank over money supply
D. (d)Marking a shift from earlier method of calibrating various policy rates separately

Answer

C