BANK MP Cooperative Bank Clerk and Committee Manager Mock Test General Knowledge Economy Money and Banking
With reference to the cash deposit ratio, consider the following statements:
1. The ratio of the Bank's cash in hands and balances with the RBI as a percentage of aggregate deposits.
2. Low credit to deposit ratio is an indicator of excess liquidity because of higher deposits within the banking system and the lack of alternatives in credit markets.
3. It is the proportion of the total deposits commercial banks keep as reserves.
Which of the above statement is/are correct?
1
1 and 3 only
2
1 and 2 only
3
2 and 3 only
4
3 only
5
1, 2, and 3