ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the proportion of money RBI lends to commercial banks
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the proportion of total deposits commercial banks keep as reserves
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the total proportion of money that commercial banks lend to the customers
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none of the above
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Detailed explanation-1: -Reserve deposit ratio (rdr) is the proportion of the total deposits commercial banks keep as reserves.
Detailed explanation-2: -Reserve Ratio Guidelines Banks with more than $124.2 million in net transaction accounts were required to maintain a reserve of 10% of net transaction accounts. Banks with more than $16.3 million to $124.2 million needed to reserve 3% of net transaction accounts.
Detailed explanation-3: -Cash Reserves Ratio (CRR) refers to the proportion of total deposit of the commercial banks which they must keep as reserves with the central bank in the form of cash deposits.
Detailed explanation-4: -The correct option is C Cash reserve ratio. As a part of the monetary policy, there are certain reserve requirements that a commercial bank has to follow. The minimum reserve maintained with the Reserve Bank of India (RBI) is called the cash reserve ratio or the CRR.
Detailed explanation-5: -Definition: 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.