As reported in the newspapers, China has asked its banks to put 12.5% money instead of earlier 12% as CRR. This correction in CRR has been made for the seventh time in past one year. Why did China have to take this step again and again and so frequently? [OBC 2008]begin{enumerate}item It will put a curb on lending of money by the banks.item It will help Govt of China to tame the rate of inflation.item It will help the poor to get easy loans at cheaper rates from the banks as higher CRR brings more money for activities of the social sector.end{enumerate}

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

As reported in the newspapers, China has asked its banks to put 12.5% money instead of earlier 12% as CRR. This correction in CRR has been made for the seventh time in past one year. Why did China have to take this step again and again and so frequently? [OBC 2008]

A	Only 1 is correct
B	Only 2 is correct
C	All the above are correct
D	Both 1 & 2 are correct

Explanation:

There is 1 question to complete.