Multiple choice

In banking terminology, CRR means.

  1. Credit Reserve Ratio

  2. Cash Reserve Ratio

  3. Credit Rating Ratio

  4. Cash Rating Ratio

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

CRR stands for Cash Reserve Ratio - the percentage of deposits banks must maintain with the Central Bank (RBI in India). It is a monetary policy tool used to control money supply and inflation. Credit Reserve Ratio and other variations are incorrect terms.