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प्रश्न
The ratio of total deposits that a commercial bank has to keep with Reserve Bank of India is called ______.
विकल्प
Statutory liquidity ratio
Deposit ratio
Cash reserve ratio
Legal reserve ratio
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उत्तर
The ratio of total deposits that a commercial bank has to keep with Reserve Bank of India is called cash reserve ratio.
Explanation:
The Cash Reserve Ratio (CRR) is the proportion of total deposits a commercial bank must keep in reserve with the Reserve Bank of India (RBI). This requirement ensures that banks keep a percentage of their deposits as reserves to help control liquidity in the banking system.
संबंधित प्रश्न
Credit creation by commercial banks is determined by (Choose the correct alternative)
Explain the credit creation role of commercial banks with the help of a numerical example.
''The process of credit creation by commercial banks comes to an end when the total of required reserves become equal to the initial deposits."
With the help of a numerical example, prove that the given statement is true.
Credit money is increased when CRR:
Match the following:
| Column I | Column II | ||
| A. | Primary deposits | (i) | Payable on demand |
| B. | Derivative deposits | (ii) | Deposits for a fixed period of time |
| C. | Demand deposits | (iii) | Cash deposits of people |
| D. | Term deposits | (iv) | Deposits created by banks (or loan deposits) |
Match the following:
| Column I | Column II | ||
| A. | Formula of Money Multiplier | (i) | Inverse |
| B. | Money multiplier = 4 | (ii) | Money multiplier = 10 |
| C. | Relationship between LRR and money multiplier | (iii) | LRR = 0.25 |
| D. | LRR = 0.1 | (iv) | `1/"LRR"` |
What is meant by primary deposits?
Why are the banks required to keep only a fraction of deposits as cash reserves?
If CRR is 20% and initial deposit is ₹1000, total deposits created are ______.
A T-account shows that a ₹10,000 cash deposit increases ______.
