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What is Reserve Requirement and Demand Deposits about?

This document discusses key concepts related to money and banking in India. It defines terms like statutory liquidity ratio (SLR), cash reserve ratio (CRR), money multiplier, primary deposits, demand deposits, and open market operations. It explains that the Reserve Bank of India regulates money supply and acts as the central bank and lender of last resort. Commercial banks use deposits to extend loans and engage in credit creation, which can increase the money supply.

Author

raman

Language

EN