Discussion
RBI asked banks to maintain additional average daily balance through incremental CRR of what percent?
Answer: C
Correct answer: 100
The incremental cash reserve ratio was set at 100 per cent, meaning that the entire increase in deposits over the specified fortnight had to be held as reserves with the RBI.
The measure was extraordinary and short-lived, a direct response to demonetisation, which deposited enormous sums into banks in a matter of weeks. Absorbing the whole increment prevented that liquidity from driving down money market rates, and it was withdrawn as soon as market stabilisation scheme issuance could do the same job.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development