Multiple choice

________ refers to that portion of total deposits of a commercial bank which it has to keep with the RBI in the form of cash reserves.

  1. CRR

  2. SLR

  3. Bank rate

  4. Repo rate

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A Correct answer
Explanation

Cash Reserve Ratio (CRR) is the mandatory fraction of deposits that commercial banks must maintain with the Central Bank (RBI in India) in cash form. It's a monetary policy tool used to control money supply and lending capacity.

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