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During festive season, the currency deposit ratio _________________.
Question

During festive season, the currency deposit ratio _________________.

A.

decreases

B.

increases

C.

has no impact on it

D.

first decreases then increases

Correct option is B

During the festive season, the currency deposit ratio (CDR) most likely (b) increases.
Here's why:
CDR: The currency deposit ratio is the ratio of cash held by the public to the total amount deposited in banks.
Festive Season: During festivals, people tend to spend more.
Cash Demand: To meet these increased expenses, people may withdraw cash from their bank accounts, leading to a rise in the amount of currency held by the public.
Deposit Ratio: As the amount of cash held by the public increases relative to the total deposits, the currency deposit ratio increases.

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