Multiple choice

Cash Reserve Ratio (CRR) is maintained in the form of

  1. investment in money market

  2. government securities

  3. balance with RBI

  4. All of the above

  5. None of these

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

CRR is the portion of bank deposits that banks must keep as cash reserves with the RBI. This ensures liquidity and monetary stability in the banking system. It is not invested in money market instruments or government securities - these are part of SLR (Statutory Liquidity Ratio).