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SSC MTS 2022 PYQ — Question 49

SSC MTS - 19 July 2022 - Shift 1 • General Awareness • Q49

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Commercial banks keep their deposits with RBI. These deposits are called ______.

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Correct answer: D

Explanation

The correct answer is Option 4 i.e. reserves.

  • The amount of assets that must be kept on hand to meet any withdrawals is known as a reserve requirement.
  • There are three main types of bank reserves: required, excess, and legal.
  • Required reserves are held by commercial banks, while excess reserves are held by the central bank.