Home
Class 14
GENERAL KNOWLEDGE
Cash Reserve Ratio (CRR) is calculated a...

Cash Reserve Ratio (CRR) is calculated as a percentage of each bank’s ___.

A

rate of inflation

B

net demand and time liabilities

C

credit growth

D

savings of customers

Text Solution

Verified by Experts

The correct Answer is:
B
Cash reserve Ratio (CRR) is the total fund that the banks have to keep with the RBI all the time. If the RBI decides to increase the CRR, the available liquidity of the market comes down. The RBI uses the CRR to drain out excessive money from the system.
Promotional Banner

Topper's Solved these Questions

  • ECONOMICS

    PINNACLE|Exercise MCQ (INTERNATIONAL ORGANISATIONS)|5 Videos

  • ECONOMICS

    PINNACLE|Exercise MCQ (GOVERNMENT SCHEMES)|4 Videos

  • ECONOMICS

    PINNACLE|Exercise MCQ (COSTS, PRODUCTION,CONSUMPTIONS AND MARKET)|20 Videos

  • CURRENT AFFAIRS

    PINNACLE|Exercise SCHEMES & PROJECTS|40 Videos

  • GEOGRAPHY

    PINNACLE|Exercise WORLD GEOGRAPHY AND MAP|3 Videos

Similar Questions

Explore conceptually related problems

Aswe allknow Cash Reserve Ratio (CRR) is the percentage of the deposit banks keep in reserve with them. This ratio is also known as:

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-

What is Cash Reserve Ratio?

If the Cash Reserve Ratio (CRR) is lowered by the RBI, its impact on credit creation will be:

PINNACLE-ECONOMICS-MCQ (NATIONAL INCOME, IFLATION, BUDGET, TAXATION AND GDP)
  1. The Banking Regulation Act was passed in India in .

    Text Solution

    |

  2. The Interest Rate charged by banks on short term loSol to their larges...

    Text Solution

    |

  3. Cash Reserve Ratio (CRR) is calculated as a percentage of each bank’s ...

    Text Solution

    |

  4. In the context of the banking sector of India, what is the full form o...

    Text Solution

    |

  5. Which of the following terms refer to the running down or payment of a...

    Text Solution

    |

  6. Which of the following banks was authorised to issue Electoral Bonds?

    Text Solution

    |

  7. In the context of International Banking transactions what is the full ...

    Text Solution

    |

  8. In which year was the State Financial Corporation Act passed ? The Act...

    Text Solution

    |

  9. Which committee was appointed to give a detailed report on the Non Per...

    Text Solution

    |

  10. Which one of the following is a monetary principle stating that “Bad m...

    Text Solution

    |

  11. Which one of the following is defined as “The proportion of highly liq...

    Text Solution

    |

  12. The responsibility of regulating and supervising primary (urban) coope...

    Text Solution

    |

  13. The rate of interest on which commercial banks borrow money from RBI t...

    Text Solution

    |

  14. In the context of the banking system in India, what does IFSC stand fo...

    Text Solution

    |

  15. With reference to Banking System of India, what does NEFT stand for?

    Text Solution

    |

  16. In context of Banking system in India what is the fullform of RTGS?

    Text Solution

    |

  17. RBI does not transact the business of which of the following State Gov...

    Text Solution

    |

  18. Who among the following was NOT a Governor of the Reserve Bank of Indi...

    Text Solution

    |

  19. How many digits are there on a debit card?

    Text Solution

    |

  20. In India, Monetary policy is formed by

    Text Solution

    |