2024 · Q103
Consider the following statements regarding Public Goods and Externalities:
- 1Non-rivalry and non-excludability are two characteristics of Public Goods
- 2Market can provide the optimal amount of a good in the presence of externalities Which of the statements given above is/are correct?
indian-polity-economyeconomy-fundamentals
- A1 only
- B2 only
- CBoth 1 and 2
- DNeither 1 nor 2
Explanation
The Cash Reserve Ratio (CRR) is the percentage of a bank's net demand and time liabilities that must be maintained as a cash balance with the RBI, earning no interest. It is not the ratio of cash to deposits held by the bank itself (option B), the SLR (option C), or the bank rate (option D). Hence option A is correct.