[amp_mcq option1=”Cash Deposit Ratio” option2=”Capital Adequacy Ratio” option3=”Cash Reserve Ratio” option4=”Statutory Liquidity Ratio” correct=”option3″]<\/p>\n
The correct answer is: C. Cash Reserve Ratio.<\/p>\n
The Cash Reserve Ratio (CRR) is the percentage of the total deposits that banks are required to keep with the Reserve Bank of India (RBI). The CRR is one of the tools that the RBI uses to control the money supply in the economy. When the RBI increases the CRR, banks have less money available to lend, which reduces the amount of money in circulation. When the RBI decreases the CRR, banks have more money available to lend, which increases the amount of money in circulation.<\/p>\n
The Capital Adequacy Ratio (CAR) is the minimum amount of capital that banks are required to hold in relation to their risk-weighted assets. The CAR is designed to ensure that banks have enough capital to absorb losses in the event of a default. The RBI sets the CAR for banks in India.<\/p>\n
The Statutory Liquidity Ratio (SLR) is the percentage of the total deposits that banks are required to hold in the form of liquid assets, such as cash, government securities, and gold. The SLR is another tool that the RBI uses to control the money supply in the economy. When the RBI increases the SLR, banks have less money available to lend, which reduces the amount of money in circulation. When the RBI decreases the SLR, banks have more money available to lend, which increases the amount of money in circulation.<\/p>\n
The RBI also uses other tools to control the money supply, such as open market operations, repo rates, and reverse repo rates.<\/p>\n","protected":false},"excerpt":{"rendered":"
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