Question

Consider the following statements about the Cash Reserve Ratio (CR

Q: Answer-&lt;p&gt;&lt;strong&gt;Consider the following statements about the Cash Reserve Ratio (CRR)? &lt;/st...

Under cash reserve ratio CRR, the commercial banks have to hold a certain minimum amount of deposit as reserves with the central bank. The percentage of cash required to be kept in reserves as against the banks total deposits, is called the Cash Reserve Ratio. The cash reserve is either stored in the bankrsquos vault or is sent to the RBI.

R ? I. Under CRR, the banks have to hold a certain minimum amount of deposit as reserves with the central bank. II. The percentage of cash required to be kept in reserves as against the bank's total deposits. III. The cash reserve is either stored in the bank’s vault or is sent to the RBI. Which of the following statements is/are incorrect?

A I & II

B II & III

C I & III

D I, II & III

E None of the statements are correct

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