The Cash Reserve Ratio (CRR) is the share of a bank's deposits that it must keep

as cash balances with the RBICorrect answerYour answerin government securities, gold or cash with itselfCorrect answerYour answeras loans to farmersCorrect answerYour answerin foreign currencyCorrect answerYour answer

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CorrectNot quiteAnswer A

Correct answer: A

CRR balances are held with the RBI and earn no interest.
Holding liquid assets such as government securities with itself is the SLR.

Worth noting

Keeping government securities, gold or cash with the bank itself is the Statutory Liquidity Ratio, not the CRR.

Concept: CRR
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsReserves and the reserve ratio

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The Cash Reserve Ratio (CRR) is the share of a bank's deposits that it must keep

Explanation