Economics · Banking and Monetary Policy
The reserve requirements imposed on banks are important not only for prudence but also for liquidity and monetary management. Cash Reserve Ratio (CRR) differs from Statutory Liquidity Ratio (SLR) mainly because CRR is maintained:
- 1in the form of gold and approved bonds
- 2as a fixed deposit with NABARD
- 3only in approved government securities
- 4in cash form with the central bank✓
Correct answer
in cash form with the central bank
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