Cash Reserve Ratio (CRR) is:
ACash held by customers
BPercentage of deposits banks must keep with the central bankCORRECT
CTotal shareholding
DBranch cash limit
CIBNBanking Principles
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Why the answer is B, and why the others tempt you.
CRR is the proportion of deposits CBN compels banks to maintain as reserves — a monetary policy tool.
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