reserve ratio
CRR stands for Cash Reserve Ratio. This is the amount of money banks have to deposit with the central bank and this amount depends on the amount of total deposits held by the bank. It is used the Central bank to control the amount of cashflow in the market and the amount of money the banks have for lending to the public
this is the amount of deposit the central bank authorise bank to keep them
When the required reserve ratio is raised, banks must loan out a smaller portion of their reserves, resulting in fewer loans.
Cash Reserve Ratio or CRR in India is the amount of money that every bank has to deposit with the RBI per customer. Every time a customer deposits cash to the bank, the bank has to correspondingly deposit a portion of that cash to the RBI. RBI decides this percentage of money that each bank has to deposit with it.
reserve ratio
Reserve requirement.
When the required reserve ratio is lowered, banks can loan out more money.
CRR stands for Cash Reserve Ratio. This is the amount of money banks have to deposit with the central bank and this amount depends on the amount of total deposits held by the bank. It is used the Central bank to control the amount of cashflow in the market and the amount of money the banks have for lending to the public
Reserve
Reserve
this is the amount of deposit the central bank authorise bank to keep them
When the required reserve ratio is lowered, banks can loan out more money.
the portion of a deposit that a bank must keep on hand
The Federal Reserve provides deposit insurance and acts as a lender to commercial banks.
reserve ratio ;p
Usually the Central Banks of each country decide such margin requirements. Ratios like Cash Reserve Ratio, Liquidity Ratio etc are set by the Central Banks like Reserve Bank of India or Federal Reserve of USA. All member banks are expected and supposed to follow these guidelines set by the central banks.