Question

What was the average (median) Cash Reserve Ratio (CRR) in India from September 1962 to 30 October 2024?

• A. 4.200%
• B. 4.000%
• C. 4.500%
• D. 3.000%

Answer 1

Answer:

B. 4.000%

The average (median) Cash Reserve Ratio (CRR) in India from September 1962 to October 30, 2024, was 4.000%. The CRR is the percentage of a bank's deposits that it is required to keep with the Reserve Bank of India (RBI). The RBI uses the CRR to control the money supply and inflation in the country The Cash Reserve Ratio (CRR) is a crucial monetary policy tool used by the Reserve Bank of India (RBI). From September 1962 to 30 October 2024, the average (median) CRR in India has been 0.04, which translates to 4%. CRR is the percentage of a bank's total deposits that must be maintained with the RBI in the form of liquid cash. The purpose of the CRR is to ensure that banks do not run out of cash to meet the payment demands of their depositors. Adjustments to the CRR can influence the liquidity and credit conditions in the banking system and are used to control inflation.