Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. CRR is set according to the guidelines of the central bank of a country. CRR controls- (SBI Main 2016)

Question

Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. CRR is set according to the guidelines of the central bank of a country. CRR controls-  (SBI Main 2016)

TuteeHUB · Accepted Answer

Marking a shift from earlier method of calibrating various policy rates separately

TuteeHUB · Answer

It cheaper for banks to borrow money

TuteeHUB · Answer

Is a tool, which central bank uses for short-term purposes

TuteeHUB · Answer

Greater control to the central bank over money supply

TuteeHUB · Answer

None of these

1.	Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. CRR is set according to the guidelines of the central bank of a country. CRR controls- (SBI Main 2016)
A.	It cheaper for banks to borrow money
B.	Is a tool, which central bank uses for short-term purposes
C.	Greater control to the central bank over money supply
D.	Marking a shift from earlier method of calibrating various policy rates separately
E.	None of these
Answer» D. Marking a shift from earlier method of calibrating various policy rates separately

Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. CRR is set according to the guidelines of the central bank of a country. CRR controls- (SBI Main 2016)

Discussion

No Comment Found

Related MCQs

Reply to Comment