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Yogita Ingle 6 years, 7 months ago
Consumer’s Equilibrium It refers to optimum choice of the consumer. In terms of indifference curve analysis, the consumer achieves his optimum choice when he strikes a balance between what he wishes to buy and what he can buy. i.e. a state of maximum satisfaction given his money income.
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Yogita Ingle 6 years, 7 months ago
Cash Reserve Ratio is the necessary minimum percentage of a bank’s total deposits that is to be kept with the central bank. Commercial banks need to maintain with the central bank a certain percentage of their deposits in the form of cash reserves. The central bank can vary the CRR between 3 and 15 percent.
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