alleryThe Cash Reserve Ratio (CRR) is:
Athe percentage of deposits a bank must keep as cash reserves
Bthe interest a bank charges on loans
Cthe profit margin earned by banks
Da tax levied on bank deposits
Answer & Solution
Correct answer: A. the percentage of deposits a bank must keep as cash reserves
CRR is the legally required percentage of deposits a bank must hold as cash reserves with the RBI, capping how much it can lend.
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