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Questions
What is meant by ‘Cash Reserve Ratio’?
What is CRR?
Short Answer
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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%.
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Notes
Students should refer to the answer according to the question.
Measures of Inflation
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