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      Question

      Which of the following is a ratio wherein the commercial

      banks have to hold a certain minimum amount of deposit as reserves with the central bank?
      A Statutory Liquidity Ratio Correct Answer Incorrect Answer
      B Cash Reserve Ratio Correct Answer Incorrect Answer
      C Minimum Percentage Ratio Correct Answer Incorrect Answer
      D Demand and Time Liabilities Ratio Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Cash Reserve Ratio (CRR) is a ratio wherein the commercial banks have to hold a certain minimum amount of deposit as reserves with the central bank.

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