Cash Reserve Ratio or CRR is prescribed by the Reserve Bank of India. The CRR is decided by the Monetary Policy Committee of the RBI.
Question : What is the full form of CRR?
Option 1: Cash Reserve Ratio
Option 2: Current Reserve Ratio
Option 3: Credit Reserve Ratio
Option 4: Capital Reserve Ratio
Option 2: Credit Rating Ratio
Option 3: Capital Reserve Ratio
Option 4: Credit Reserve Ratio
Option 2: Credit Reserve Ratio
Option 3: Currency Reserve Ratio
Option 4: None of the above
Question : Which among the following statements is incorrect?
Option 1: An increase in the bank rate will decrease the money supply.
Option 2: The lower the Cash Reserve Ratio (CRR), the lower will be the liquidity in the system.
Option 3: The higher the Cash Reserve Ratio (CRR), the lower the liquidity in the system.
Option 4: The lower the Statutory Liquidity Ratio (SLR), the higher the liquidity in the system.
Question : The ratio of cash reserves to demand and time deposits of commercial banks is known as ___________.
Option 1: Cash reserve ratio (CRR)
Option 2: Statutory liquidity ratio (SLR)
Option 3: Repo rate
Option 4: Reverse repo rate
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