CASH RESERVE RATIO Definition

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CASH RESERVE RATIO (CRR) is a ratio which banks have to maintain with itself in the form of cash reserves or by way of current account with the Reserve Bank, computed as a certain percentage of its demand and time liabilities. The objective is to ensure the safety and liquidity of the deposits with the banks.

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STRIPPED YIELD is the annual dollar dividend of a pre­ferred stock divided by its stripped price.

ABNORMAL RETURNS is the difference between the actual return and that is expected to result from market movements (normal return).

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