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what is CRR ? define the sutiable example.
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Answer / shinoj.k.s.
The reserve requirements (or cash reserve ratio) is a
central bank regulation that sets the minimum reserves each
bank must hold to customer deposits and notes. It would
normally be in the form of fiat currency stored in a bank
vault (vault cash), or with a central bank.
The reserve ratio is sometimes used as a tool in the
monetary policy, influencing the country's economy,
borrowing, and interest rates.[3] Western central banks
rarely alter the reserve requirements because it would
cause immediate liquidity problems for banks with low
excess reserves; they prefer to use open market operations
to implement their monetary policy. The People's Bank of
China uses changes in reserve requirements as an inflation-
fighting tool,[4] and raised the reserve requirement nine
times in 2007. As of 2006 the required reserve ratio in the
United States was 10% on transaction deposits (component of
money supply "M1"), and zero on time deposits and all other
deposits.
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POs 
