Multiple choice general knowledge

The part of the total deposits that is maintained in cash by the banks is referred to as

  1. Reserve ratio

  2. CRR or Cash-Reserve Ratio

  3. NRR Net reserve ratio

  4. Bank Reserve
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Cash Reserve Ratio (CRR) is the portion of total deposits that banks must maintain in cash with the Reserve Bank of India. It's a monetary policy tool used by RBI to control money supply and liquidity in the banking system. Unlike reserve ratio which is a broader concept, CRR specifically refers to cash reserves.

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