Home › Bihar Board Class 12 (Arts) › Economics › Money and Banking › The legal percentage of deposits banks must hold…
The legal percentage of deposits banks must hold as cash with the RBI is the
AThe repo rate
BThe bank rate
CCash Reserve Ratio
DThe spread ratio
Answer & Solution
Correct answer: C. Cash Reserve Ratio
The required reserve ratio, also called the Cash Reserve Ratio, caps how much banks can lend.
Related questions
How many major commercial banks did India nationalise in 1969?The Reserve Bank of India was nationalised in which year?Interbank deposits are excluded from money supply because only deposits of theWhich measures are called narrow money?M3 equals M1 plusWhich of these is the narrowest RBI measure of money?Money supply is aFixed deposits are an example of