Which of the following is/are correct statement(s)? Statement 1: The Central Bank can influence the country's economy by adjusting the Cash Reserve Ratio (CRR). Statement 2: Commercial banks can issue currency notes as long as they meet the reserve requirements set by the Central Bank.

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KollegeApply · Accepted Answer

Only Statement 1 is true. Explanation: The Cash Reserve Ratio (CRR) is an effective quantitative monetary policy tool that allows the Central Bank to control the money supply, credit creation, and inflation or growth.

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