Single Answer MCQ
Q-00015897
What requirement do banks in India have concerning cash balances?
1
To lend as much as possible
2
To maintain a minimum cash balance out of deposits
3
To invest in foreign currency
4
To offer loans only to profit-making businesses
Answer and Solution
Answer
B. To maintain a minimum cash balance out of deposits
Solution:
Banks are required to maintain a minimum cash balance out of their deposits to ensure they can meet withdrawal demands and uphold financial stability.
Watch Video Solution