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प्रश्न
Why are the banks required to keep only a fraction of deposits as cash reserves?
संक्षेप में उत्तर
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उत्तर
There are two reasons:
- Not all depositors approach the banks for withdrawal of money at the same time, and also that normally they withdraw a fraction of deposits.
- There is a constant flow of new deposits into the banks.
Therefore, to meet the daily demand for withdrawal of cash, it is sufficient for banks to keep only a fraction of deposits as cash reserves.
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क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
संबंधित प्रश्न
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| Column I | Column II | ||
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