The percentage of deposits a bank must keep as cash reserves is the:

Question

Accepted Answer

C. Cash Reserve Ratio

1. It is a legal requirement set by the RBI.
2. This is the Cash Reserve Ratio, CRR.
3. It stops banks over-lending.
_Source: syllabus Introductory Macroeconomics, Chapter 3, Money and Banking._

Answer

Bank Rate ratio

Answer

Repo Rate ratio

Answer

Liquidity Ratio

The percentage of deposits a bank must keep as cash reserves is the:

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