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The Cash Reserve Ratio is a tool of :
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- Monetary policy
- Tax policy
- Agricultural policy
- Fiscal policy
- Monetary policy
Correct Option: A
Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. CRR is a crucial monetary policy tool and is used for controlling money supply in an economy.