Question

In banking terminology, CRR means

• A. Credit Reserve Ratio
• B. Cash Reserve Ratio
• C. Credit Rating Ratio
• D. Cash Rating Ratio

Answer 1

The Correct Option is B

In banking terminology, the acronym CRR stands for Cash Reserve Ratio. This is a crucial financial term related to the regulatory framework for banks. It refers to the minimum percentage of a bank's total deposits that must be held in reserve in the form of liquid cash, which is not available for lending or investment. The central bank, such as the Reserve Bank of India (RBI) in India, dictates this requirement to ensure liquidity and financial stability in the banking system.

Term	Meaning
CRR	Cash Reserve Ratio

The correct answer is therefore: Cash Reserve Ratio.