Multiple Choice Questions on Cash reserve ratio is determined by ........ for UPSC Civil Services Examination (General Studies) Preparation

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Multiple Choice Questions

Cash reserve ratio is determined by ........

Economic Affairs Money Supply and Monetary Policy
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    Cash reserve ratio is determined by

    Union government

    Incorrect Answer

    Market forces

    Incorrect Answer

    Reserve bank of India

    Correct Answer

    None of the above

    Incorrect Answer
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    Explanation:

    The Cash Reserve Ratio is the amount of funds that the banks are bound to keep with Reserve bank of India as a portion of their Net Demand and Time Liabilities (NDTL). The objective of CRR is to ensure the liquidity and solvency of the Banks.

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