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What is CRR or Cash Reserve Ratio

Friday, October 10, 2008

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What is CRR or Cash Reserve Ratio

Cash Reserve Ratio is a bank regulation that sets the minimum reserves each bank must hold to customer deposits and notes. These reserves are designed to satisfy withdrawal demands, and would normally be in the form of fiat currency stored in a bank vault (vault cash), or with a central bank. The reserve ratio is sometimes used [...]