Economics · Monetary Policy
What is meant by Cash Reserve Ratio (CRR)?
- 1The share of deposits that a bank keeps with itself in the form of cash.
- 2The percentage of net demand and time liabilities that commercial banks must keep with the Reserve Bank of India.✓
- 3The percentage of cash held by the government.
- 4The interest rate offered on savings accounts.
Correct answer
The percentage of net demand and time liabilities that commercial banks must keep with the Reserve Bank of India.
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