| Q.73 | Which of the following statements is correct? | |
| Ans | 1. The amount of loan granted by a commercial bank is generally lesser than the amount of deposits received by it. | |
| 2. A higher Legal Reserve Ratio (LRR) creates less amount of money and a lower LRR creates a higher amount of money in the economy. | ||
| 3. Moral suasion is a method whereby the central bank of a country fixes maximum ceiling of loans to be granted by commercial banks, either on aggregate basis or for a particular use. | ||
| 4. A commercial bank creates money by printing of currency notes. |
Correct Ans Provided: 2
