Question

8. What portion of deposits are kept by the banks for their day to day transaction?
(a) 10% (b) 15%
(c) 20%
(d) 25%
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Answer 1

Answer:

15% are kept as reserves in the bank to provide day to day transactions

Answer 2

Answer:

The answer is (B) 15%

Explanation:

• A portion of deposits made by customers of the bank is supposed to be kept for day-to-day transactions. Whereas the remaining amount is loaned and used for other functions of the bank.
• The amount which is kept by the bank for the day-to-day transactions is kept at 15% as per the rules and regulations.

• There is a certain percentage of cash that is required to be kept by the bank with the Central Bank (RBI) as reserves. This percentage of cash is referred to as Cash Reserve Ratio (CSR).