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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