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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