Expand CRR
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Cash Repo Rate
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Currency Reserve Ratio
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Cash Reserve Ratio
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Cash Repeat Ratio
CRR stands for Cash Reserve Ratio - the fraction of deposits banks must maintain with RBI. It's a monetary policy tool, not related to repo rates or currency reserves.
To answer this question, you need to understand the concept of CRR, which stands for Cash Reserve Ratio.
Option A) Cash Repo Rate - This option is incorrect because the term "Cash Repo Rate" refers to the rate at which banks borrow cash from the Reserve Bank of India (RBI) by selling their securities with an agreement to repurchase them at a later date.
Option B) Currency Reserve Ratio - This option is incorrect because there is no such term as "Currency Reserve Ratio." The term commonly used for the reserve ratio related to currency is the Cash Reserve Ratio.
Option C) Cash Reserve Ratio - This option is correct. The Cash Reserve Ratio (CRR) is the percentage of a bank's total deposit that it has to maintain with the central bank (in this case, the Reserve Bank of India). It is used to control the money supply in the economy and is a tool of monetary policy.
Option D) Cash Repeat Ratio - This option is incorrect because there is no term as "Cash Repeat Ratio." The correct term is Cash Reserve Ratio.
The correct answer is Option C) Cash Reserve Ratio. This option is correct because it accurately expands the abbreviation CRR.