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Question
RBI can very CRR between _________.
RBI can very CRR between _________.
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Solution
The correct option is B 3 to 15%
Cash Reserves Ratio
(CRR) refers to the proportion of total deposits of the commercial banks
which they must keep as reserves with the central bank in the form of
cash. Cash reserve ratio is determined by central bank so that they can control
the amount of credit creation of the commercial banks at the time of inflation
or deflation in the economy. By the order of the parliament, Reserve Bank of India(RBI) can vary the cash reserve ratio between 3 to 15% of the total deposits of the commercial banks.
Cash Reserves Ratio (CRR) refers to the proportion of total deposits of the commercial banks which they must keep as reserves with the central bank in the form of cash. Cash reserve ratio is determined by central bank so that they can control the amount of credit creation of the commercial banks at the time of inflation or deflation in the economy. By the order of the parliament, Reserve Bank of India(RBI) can vary the cash reserve ratio between 3 to 15% of the total deposits of the commercial banks.
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