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Match List-I with List-II

List-IList-II
(A) Cash Reserve Ratio(I) Reserves + Loans
(B) Net Worth(II) Deposits
(C) Assets(III) Percentage of deposits which a bank must keep as cash reserves with the central bank
(D) Liabilities(IV) Assets – Liabilities

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 4

Option 1 -> (A)-(I), (B)-(II), (C)-(III), (D)-(IV) - Incorrect matching of all terms.

Option 2 -> (A)-(I), (B)-(IV), (C)-(II), (D)-(III) - Incorrect match for Cash Reserve Ratio and Assets.

Option 3 -> (A)-(I), (B)-(II), (C)-(IV), (D)-(III) - Incorrect match for Cash Reserve Ratio and Net Worth.

Option 4 -> (A)-(III), (B)-(IV), (C)-(I), (D)-(II) - Correct matching of all banking terms.


Hence, Option 4: (A)-(III), (B)-(IV), (C)-(I), (D)-(II) -> Cash Reserve Ratio (CRR) is the statutory percentage of deposits that commercial banks must maintain as reserves with the central bank. Net Worth represents the capital or equity of a bank, calculated as Assets minus Liabilities. Assets of a bank primarily consist of Reserves (cash holdings) and Loans (advances given to borrowers). Liabilities of a bank mainly include Deposits made by customers, which the bank owes to depositors. -> correct

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