CRR (Cash Reserve Ratio) refers to the cash which banks have to maintain with the RBI as a percentage…
CRR is calculated with reference to net demand and time liabilities. Banks maintain the prescribed cash reserve with the RBI; loans, total assets and existing cash balances…
Choose your answer
CRR (Cash Reserve Ratio) refers to the cash which banks have to maintain with the RBI as a percentage on __________ .
Answer and explanation
Correct answer D
CRR is calculated with reference to net demand and time liabilities. Banks maintain the prescribed cash reserve with the RBI; loans, total assets and existing cash balances are not the liability base used for this calculation.
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Tamil Nadu SET (TNSET)