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What is meant by ‘Cash Reserve Ratio’? - Geography

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Answer in Brief

What is meant by ‘Cash Reserve Ratio’?

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Solution

Cash reserve ratio (CRR) means the minimum percentage of a bank’s total deposits necessary to be kept with the central bank. Commercial banks need to maintain with the central bank a certain percentage of their deposits in the form of cash reserves. The central bank can vary the CRR between 3% and 15%.

Concept: Measures of Inflation
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