{"id":21361,"date":"2024-04-15T06:05:13","date_gmt":"2024-04-15T06:05:13","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=21361"},"modified":"2024-04-15T06:05:13","modified_gmt":"2024-04-15T06:05:13","slug":"a-proportion-of-the-total-deposits-and-reserves-of-the-commercial-banks-that-is-to-be-kept-with-the-central-bank-rbi-on-liquid-form-as-a-measure-of-control-of-rbi-over-the-commercial-banks-is-known","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/a-proportion-of-the-total-deposits-and-reserves-of-the-commercial-banks-that-is-to-be-kept-with-the-central-bank-rbi-on-liquid-form-as-a-measure-of-control-of-rbi-over-the-commercial-banks-is-known\/","title":{"rendered":"A proportion of the total deposits and reserves of the commercial banks that is to be kept with the Central Bank (RBI) on liquid form as a measure of control of RBI over the Commercial Banks is known as: A. Bank rate B. Statutory Liquidity Ratio (SLR) C. Cash Reserve Ratio (CRR) D. Mandatory deposit"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9a017e47837\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    Bank rate                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Statutory Liquidity Ratio (SLR)                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    Cash Reserve Ratio (CRR)                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    Mandatory deposit                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is <strong>C. Cash Reserve Ratio (CRR)<\/strong>.<\/p>\n<p>The Cash Reserve Ratio (CRR) is a measure of control of the Reserve Bank of India (RBI) over the Commercial Banks. It is a proportion of the total deposits and reserves of the commercial banks that is to be kept with the Central Bank (RBI) on liquid form.<\/p>\n<p>The CRR is one of the tools used by the RBI to control the money supply in the economy. By increasing or decreasing the CRR, the RBI can control the amount of money that is available for lending by the commercial banks.<\/p>\n<p>A higher CRR means that the commercial banks have less money available for lending. This can lead to <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> a decrease in the money supply and a slowdown in economic activity. A lower CRR means that the commercial banks have more money available for lending. This can lead to an increase <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> in the money supply and an acceleration in economic activity.<\/p>\n<p>The CRR is set by the RBI and is reviewed periodically. The current CRR is 4%.<\/p>\n<p>The other options are incorrect.<\/p>\n<ul>\n<li>Bank rate is the rate at which the RBI lends money to the commercial banks.<\/li>\n<li>Statutory Liquidity Ratio (SLR) is the minimum amount of liquid assets that commercial banks are required to hold as a percentage of their net demand and time liabilities.<\/li>\n<li>Mandatory deposit is a deposit that is required to be made by the commercial banks with the RBI.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[207],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A proportion of the total deposits and reserves of the commercial banks that is to be kept with the Central Bank (RBI) on liquid form as a measure of control of RBI over the Commercial Banks is known as: A. 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