Economics · Banking and Monetary Policy
Which of the following options correctly defines Cash Reserve Ratio (CRR)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The interest paid by commercial banks to their depositors.
- 2The share of net demand and time liabilities that banks must maintain as cash balance with the Central Bank.✓
- 3The minimum percentage of deposits a bank has to maintain in physical cash within its own vault.
- 4The minimum amount a customer needs to maintain in their bank account.
Correct answer
The share of net demand and time liabilities that banks must maintain as cash balance with the Central Bank.
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