Which of the following Quantitative Instruments of Monetary Policy is being described in the follow...........

Economic and Social Issues Monetary and Fiscal Policy

Which of the following Quantitative Instruments of Monetary Policy is being described in the following lines?

It is nothing but the average daily balance that a bank shall maintain with the Reserve Bank as a share of such per cent of its NDTL (net demand and time liabilities) that the Reserve Bank may notify from time to time in the Gazette of India.

Cash Reserve Ratio (CRR)

Statutory Liquidity Ratio (SLR)

Repo Rate

Marginal Standing Facility (MSF)

None of the options given above

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Explanation:

CRR is the amount of money that the banks have to keep with RBI in cash form. It is nothing but the average daily balance that a bank shall maintain with the Reserve Bank as a share of such per cent of its NDTL (net demand and time liabilities) that the Reserve Bank may notify from time to time in the Gazette of India.