A certain percentage of deposits which a bank must keep in the form of cash…
2021
A certain percentage of deposits which a bank must keep in the form of cash with the RBI is called __________.
- A.
Statutory Liquidity Ratio - SLR
- B.
Cash Reserve Ratio - CRR
- C.
Open Market Operations
- D.
Liquidity Adjustment Facility
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Show answer & explanation
Correct answer: B
Cash Reserve Ratio (CRR) is the percentage of a bank's total deposits that it must keep as cash reserve with the Reserve Bank of India. Since the question asks for the percentage of deposits kept in cash with the RBI, the correct answer is Cash Reserve Ratio (CRR).