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      Question

      In Cash Reserve Ratio, the amount of reserve requirement

      is calculated as a percentage of? 
      A Deposits of the bank Correct Answer Incorrect Answer
      B Loans and advances of the bank Correct Answer Incorrect Answer
      C Capital of the banks Correct Answer Incorrect Answer
      D Total liabilities of the bank Correct Answer Incorrect Answer
      E All of the above Correct Answer Incorrect Answer

      Solution

      CRR and SLR is computed against the NDTL – Net Demand and Time Liabilities of the bank. NDTL includes deposits and other liabilities of the bank. 

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