The minimum amount which banks are required to deposit with the central bank is determined by the?

By: |Published on: Oct 23|Categories: Economics JAMB| 0 comments

A. liquidity ratio
B. cash reserve ratio
C. minimum lending rate
D. aggregate credit ceiling

Correct Answer:

Option B – cash reserve ratio

Explanation

Cash Reserve Ratio (CRR) is a certain minimum amount of deposit that the commercial banks have to hold as reserves with the central bank.

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