_______ refers to that portion of total deposits that a commercial bank is required to keep with RBI in the forms of reserves.

CA Foundation · Business Economics · MTP · September 2024
_______ refers to that portion of total deposits that a commercial bank is required to keep with RBI in the forms of reserves.
(A) A. Compulsory Reserve Ratio
(B) B. Statutory Liquid Ratio
(C) C. Legal Reserve Ratio
(D) D. Cash Reserve Ratio

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. Cash Reserve Ratio

Topics: Money Market

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