What is Currency Deposit Ratio (CDR)?

CA Foundation · Business Economics · MTP · April 2025
What is Currency Deposit Ratio (CDR)?
(A) A. Ratio of money held by the public in currency to that of money held in bank deposits
(B) B. Ratio of money held by the public in bank deposits to that of money held by public in currency
(C) C. Ratio of money held in demand drafts to that of money held in treasury bonds
(D) D. None of the above

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Ratio of money held by the public in currency to that of money held in bank deposits

Topics: Money Market

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