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Term of the Day
cash reserve ratio (CRR)
cash rent
cash reserves
Definition
The
percentage
of a
bank's
total
monetary
holdings
that must be kept on
hand in
the form of
actual
currency
. Under fractional-reserve
banking
, a
bank
may
lend
out any
money
deposited there, but must maintain on
site
the
amount
mandated by the
cash
reserve ratio
.
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