Multiple choice

The Cash Ratio that the banks are required to keep with RBI is known as

  1. Liquidity Ratio

  2. Stautory Liquidity Ratio

  3. Cash Reserve Ratio

  4. Net Demand and Time Liability

  5. None of these

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

The Cash Reserve Ratio (CRR) is the portion of deposits that banks are required to keep as cash reserves with the Reserve Bank of India.