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What else can I help you with?
Which of the rates decided by the RBI is called Policy Rate?
Cash Reserve ratio
How do you find the required reserve ratio?
the portion of a deposit that a bank must keep on hand
What is variable reserve ratio?
The variable cash reserve ratio is new method of credit control used by central banks in recent times. The term variable ratio refers to the minimum reserves with the central bank by the commercial banks. As per section 42 (1) of the reserve bank of india, 1934, every scheduled bank has to maintain a minimum cash balance as reserve to be calculated as a percentage on their time and demand liabilities. Variable reserve ratio was used as one of the credit control methods. This methods was suggested by keynes in 1930. This method was first introduced by federal Reserve System of USA in 1935.
Why is required reserve ratio important?
The reserve requirement (or cash reserve ratio) is a central bank regulation that sets the minimum reserves each commercial bank must hold (rather than lend out) of customer deposits and notes. It is normally in the form of cash stored physically in a bank vault (vault cash) or deposits made with a central bank. The reserve requirement can be used as an instrument of monetary policy, because the higher the reserve requirement is set, the less funds banks will have to loan out, leading to lower money creation and perhaps ultimately to higher purchasing power of the money previously in use. The required reserve ratio is sometimes used as a tool in monetary policy, influencing the country's borrowing and interest rates by changing the amount of funds available for banks to make loans with.
Does the simple money multiplier decrease as the reserve ratio decreases?
No, the simple money multiplier actually increases as the reserve ratio decreases. The money multiplier is calculated as 1 divided by the reserve ratio (MM = 1 / reserve ratio). Therefore, when the reserve ratio is lower, the denominator is smaller, resulting in a higher multiplier effect, allowing banks to create more money through lending.
What is current cash reserve ratio in 2011?
the current CRR ratio of 2011 is 6%.
What is the current Cash Reserve Ratio in India?
7%
What is the current cash reserve ratio in Pakistan?
5%
What is current CRR in INDIA?
Cash reserve ratio...This is stipulated % of deposits that the bank has to maintain in Cash with RBI.Current CRR =5.5%
Formula for calculating cash debosit ratio?
cash reserve ratio
What is current cash reserve ratio and SLR ratio?
As on 19th aug, 09 CRR is 5% and SLR is 24% You can get the latest CRR and SLR from http://www.rbi.org.in/home.aspx
Where can one find information on a cash reserve ratio?
You can find information on a cash reserve ratio when you go to the websites of BanKingawareness, mrunal, AllBankingSolutions, as well as wikinvest, etc.
What country was introduced the cash reserve ratio?
Canada India
What is the current ratio of Current Reserve Ratio?
The current reserve ratio for net transaction accounts totaling more than $43.9 Million is 10%. Source: http://www.federalreserve.gov/monetarypolicy/reservereq.htm#table1
What are the types of liquidity ratios?
1) Statutory Liquid Ratio 2) Cash Reserve Ratio
What is ment by CRR?
CRR MEANS CASH RESERVE RATIO IS A DECLINE IN THE LIQUIDITY OF A ECONOMY THIS IS CREDIT RESERVE RATION IN WHICH A COMMERCIAL BANK HAVE MAINTAIN A PERCANGE OF BALANCE WITH RBI CRR MEANS CASH RESERVE RATIO IS A DECLINE IN THE LIQUIDITY OF A ECONOMY
Declaring cash dividends effect on current ratio?
decrease current ratio
