Question

______ refers to a certain percentage of total deposits the commercial banks are required to maintain in the form of cash reserve with the Central bank.

Options

• Cash Reserve Ratio

• Reverse repo rate

• Repo rate

• None of the above

Answer 1

Cash Reserve Ratio refers to a certain percentage of total deposits the commercial banks are required to maintain in the form of cash reserve with the Central bank. 

Explanation:

The Cash Reserve Ratio is a percentage of total deposits that commercial banks must keep in cash reserve with the central bank.