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.
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