Answer to Question #227430 in Macroeconomics for Millicent

Question

What is the Cash Reserve Ratio (CRR)?

Select one:

a. none of the given options

b. the fraction of the deposits that commercial banks must keep with RESERVE BANK

c. the fraction of the deposits that RESERVE BANK must keep with commercial banks

d. the fraction of the deposits that commercial banks lend to the customers

Answer 1

b. the fraction of the deposits that commercial banks must keep with RESERVE BANK