cash reserve ratio (CRR)


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.

Use this term in a sentence

The cash reserve ratio had to be figured out and I was interested in the percentage that would be calculated.

​ Was this Helpful? YES  NO 9 people found this helpful.

You should try and make sure that you always have a good enough cash reserve ratio to handle your customers needs.

​ Was this Helpful? YES  NO 8 people found this helpful.

To be successful in your own finances consider having a cash reserve ratio much like a bank so you would have money for emergencies as they arise.

​ Was this Helpful? YES  NO 2 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
cash rent cash reserves