Multiple choice general knowledge

Low CRR Ratio for the bank means,it can maintain reserves

  1. low

  2. high

  3. moderate

  4. no dependency in CRR Raio

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

CRR (Cash Reserve Ratio) is the percentage of deposits banks must keep with RBI. A low CRR means banks can maintain LOW reserves and lend more money. High CRR forces banks to keep more reserves, reducing lending capacity.