PUBLIC FINANCE

Hi CRR and SLR are what the banks suppose to keep as reserve and which is statutorily mandated (compulsory) Excess Reserve is nothing but the reserve which banks keep over and above what is required to be kept as CRR and SLR

frenil dsouza

Faculty

30-May-22 10:08

If crr is the minimum money kept aside by banks then what is excess reserves. Total Reserve - CRR =Excess reserves Does total reserve include Slr ?

Thread Starter

pradyumna hariramani

CA Inter

★ 290

30-May-22 00:08

Does the excess reserve refer to the High power money or the base money ?

Thread Starter

pradyumna hariramani

CA Inter

★ 290

30-May-22 00:38

Someone pls tell guys?Pls any professor?

Thread Starter

pradyumna hariramani

CA Inter

★ 290

30-May-22 00:38

Is this that monetary base in the money Multiplier formula?

Thread Starter

pradyumna hariramani

CA Inter

★ 290

30-May-22 00:39

CRR: Portion of NDTL, Bank has to maintain with RBI SLR: Portion of NDTL, bank maintains with itself in any one form - Cash, Gold, Investment in unencumbered instruments�� Generally cash is not kept because it has opportunity cost Base Money refers to the total liability of RBI

Swetha S

CA Inter

★ 15K+

30-May-22 06:44

Excess Reserve means if Central Bank asks to maintain 18% SLR but bank maintains 20%. Here the additional 2% is known as Excess Reserve

Swetha S

CA Inter

★ 15K+

30-May-22 06:46

You can make this thread private if you want answer from professor

Priyanka R

CA Final

★ 20K+

30-May-22 07:46

https://www.wallstreetmojo.com/crr-vs-slr/

shalu Muthukumar

CA Final

★ 1K+

30-May-22 18:11

No naa

Avasarala Vivek Aditya

CA Inter

★ 6K+

31-May-22 17:26

This is not the case :)

Sahibdeep Singh

CA Inter

★ 14K+

01-Jun-22 18:20