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What is a bank's reserve to deposit ratio?
70%
What is a bank's reserve-to-deposit ratio?
this is the amount of deposit the central bank authorise bank to keep them
What term indicates the percentage of a banks total deposit that must be kept in its own vaults?
reserve ratio
What term indicates the percentage of banks total deposit that must be kept in its own vaults?
reserve ratio
What is the required reserve ratio (RRR)?
the portion of a deposit that a bank must keep on hand
What is the cash reserve ratio in India?
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.
What is cash reserve ratio or CRR?
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.
Which would create the most money?
the initial deposit is $6500 and the required reserve ratio is 20 percent
Term indicates the percentage of a bank's total deposit that must be kept in its own vaults?
reserve ratio
What accurately describes how lowering the required reserve ratio increases the money supply?
When the required reserve ratio is lowered, banks can loan out more money.
What is The percentage of deposits that a bank must retain for depositors called?
It is called Cash Reserve Ratio. It is the % of money from the amount collected from depositors that needs to be maintained as deposit with the reserve bank. The bank cannot use this money for its financial needs. For Ex: if the CRR is 5% and you deposit $1000 into your account, the bank has to deposit $50 against your name
If the required reserve ratio is 20 percent and a customer deposited 5000 in the bank how much is available to the bank for lending?
If the required reserve ratio is 20 percent, the bank must keep 20 percent of the $5,000 deposit as reserves. This means the bank must hold $1,000 in reserve, leaving $4,000 available for lending.
