Question:

In banking terminology, CRR means

Updated On: Aug 23, 2025
  • Credit Reserve Ratio
  • Cash Reserve Ratio
  • Credit Rating Ratio
  • Cash Rating Ratio
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The Correct Option is B

Solution and Explanation

In banking terminology, the acronym CRR stands for Cash Reserve Ratio. This is a crucial financial term related to the regulatory framework for banks. It refers to the minimum percentage of a bank's total deposits that must be held in reserve in the form of liquid cash, which is not available for lending or investment. The central bank, such as the Reserve Bank of India (RBI) in India, dictates this requirement to ensure liquidity and financial stability in the banking system.

TermMeaning
CRRCash Reserve Ratio

The correct answer is therefore: Cash Reserve Ratio.

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