Question

define cash reserve ratio

Answer 1

Definition: Cash Reserve Ratio (CRR) is a certain minimum amount of deposit that the commercial banks have to hold as reserves with the central bank. CRR is set according to the guidelines of the central bank of a country.

Answer 2

Cash reserve ratio ( CRR ) is a certain minimum amount of deposit that the commercial bank have to hold as reserves with the central bank.
Cash reserve ratio is set according to the guidelines of the central bank of a country. Also we can say that CRR is a tool used by a central bank to control the liquidity in the banking system. The aim is to ensure that banks do not run out of cash to meet the payment demands of their depositors.