AVERAGE AGE OF INVENTORY Definition

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AVERAGE AGE OF INVENTORY is calculated by the formula: 365 / inventory turnover.

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OFF-FRONT PAYMENT see UP-FRONT PAYMENT.

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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