Which among the following is true? 1. Decrease in cash reserve ratio injects higher liquidity in the system 2. Higher liquidity in the system may soften interest rates 3. Higher market borrowing by the government leads to rise in interest rates Choose your answer from: (a) 1 and 2 (b) 1 and 3 (c) 2 and 3 (d) 1, 2 and 3

Which among the following is true? 1. Decrease in cash reserve ratio

1.	Which among the following is true? 1. Decrease in cash reserve ratio injects higher liquidity in the system 2. Higher liquidity in the system may soften interest rates 3. Higher market borrowing by the government leads to rise in interest rates Choose your answer from: (a) 1 and 2 (b) 1 and 3 (c) 2 and 3 (d) 1, 2 and 3
Answer» The correct option: (d) 1, 2 and 3

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