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what happens in the stockmarket when RBI changes the CRR
rates(REPO RATES)
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Answer Posted / bala
The cut in CRR pumps in the liquidity to the market. Cash
Reserve Ratio is the ratio at which each bank keep their
cash reserve with RBI. When this ratio is reduced, the
excess cash is released by RBI and they are indirectly
pumped into the Stock market, which will help to reduce the
crunch situation
| Is This Answer Correct ? | 9 Yes | 2 No |
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