McqMate
Q. |
The ratio of a bank's cash holdings to its total deposit liabilities is called the - |
A. | Variable Reserve Ratio |
B. | Cash Reserve Ratio |
C. | Statutory Liquidity Ratio |
D. | Minimum Reserve Ratio |
Answer» B. Cash Reserve Ratio | |
Explanation: Cash Reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. If the central bank decides to increase the CRR, the avail-able amount with the bankscomes down. The RBI uses the CRR to drain out excessive money from the system. |
View all MCQs in
Economics (GK)No comments yet