Question

What is Cash Reserve Ratio?
A) Deposits of banks in government securities B) Rate at which banks borrow funds from the RBI C) Deposits (as cash) which banks have to keep/maintainwith the RBI D) Rate at which RBI borrows money from the banks

Answer 1

$\huge\pink{Answer}$

${{\boxed{\bold{\blue{ Option -\: A}}}}}$

A) Deposits of banks in government securities .

▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃

About more

• The Cash Reserve Ratio refers to a certain
• percentage of total deposits the
• commercial banks are required to maintain in the form of cash reserve with the central bank .

▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃

(CRR) stand for -

⠀ ⠀ ⠀ ⠀ Cash Reserve Ratio (CRR)