2006-12-08 20:07:02 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Just visit Economic Times. NSe india.com, BSE india.com and you will find the answers.
THANKS
2006-12-08 20:17:00 · answer #1 · answered by AVANISH JI BANARAS WALE 1 · 0⤊ 0⤋
There are many ways to control the inflation rate from going up. Inflation rate indicates the power of buying by giving a rupee.
money circulation in the market needs to be controled so as to get the money circulation under control. In India Reserve Bank Of India is the controlling authority that monitor the inflation rate and other economic parameters. RBI can check the money circulation simply by asking the scheduled banks to increase the cash reserve ration with it. Cash reserve ration is the ration of money the scheduled banks has to kept as fixed deposit in RBI. The only difference is that the scheduled banks can not withdraw it.
The disadvatage of applying this method is that banks ability to lend will decrease. As the lending power decrease the economic activities will also affected
2006-12-09 04:39:02 · answer #2 · answered by shiju u 1 · 0⤊ 0⤋
It is the amount represented as percentage of the demand and time liabilities of the bank, as a whole. This amount is kept in deposit accounts with Reserve Bank of India and hence known as "Cash reserves"
2006-12-09 12:06:05 · answer #3 · answered by cvrk3 4 · 0⤊ 0⤋