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

Economics
JAMB 2012

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

  • A. liquidity ratio
  • B. cash reserve ratio
  • C. minimum lending rate
  • D. aggregate credit ceiling
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Correct Answer: Option B
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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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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