Q. Cash Reserve Ratio (CRR) is calculated as a percentage of each bank__ Answer:
net demand and time liabilities
Notes: Cash Reserve Ratio (CRR) is the percentage of cash deposits that banks need to keep with the Reserve Bank of India on a fortnightly basis. Increasing the CRR also means banks have lesser money to lend. In the absence of enough liquidity in the financial system, banks have to increase their lending rates to decrease the demand for money.