The ratio of money held by the public in currency to that held as deposits in commercial banks is called :

Currency Deposit Ratio

The correct answer is Currency Deposit Ratio.

The currency deposit ratio (CDR) is a measure of the proportion of money that the public holds in the form of currency rather than deposits in commercial banks. It is calculated by dividing the total amount of currency in circulation by the total amount of deposits held by commercial banks.

The CDR is an important indicator of the overall liquidity of the economy. A high CDR indicates that the public is holding more currency and less deposits, which suggests that they are more likely to be using their money for transactions or savings rather than for investment. A low CDR, on the other hand, indicates that the public is holding more deposits in the form of savings or checking accounts rather than currency.

The CDR is also used by central banks to control the money supply in the economy. By changing the CDR, central banks can influence the amount of money that is available for lending and spending.