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Question

25 point reduction in CRR has increased money supply is a ____________ statement.

A
subjective
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B
negative
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C
positive
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D
normative
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Solution

The correct option is C positive

2525 point reduction in CRR has increased money supply is a Positive statement. This is because Positive statements study the facts of life i.e it deals with 'things as they are'. It deals with what are the economic problems and how are they actually solved.
It explains the cause and effect relationship and avoids giving suggestions. Since, the given statement is not suggesting anything, it is positive in nature.


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