Match List-I with List-II

Choose the correct answer from the options given below:

(A)-(IV), (B)-(I), (C)-(II), (D)-(III)

The correct answer is Option (2) → (A)-(IV), (B)-(I), (C)-(II), (D)-(III)

• A) Percentage of deposits that a bank keep as reserve with Central Bank: This is the definition of the Cash Reserve Ratio (CRR). Commercial banks are legally required to hold a certain fraction of their net demand and time liabilities as reserves with the central bank. Matches with (IV) Cash Reserve Ratio.

• B) Banks Assets: A bank's assets represent what it owns or what is owed to it. The primary assets for a commercial bank include the cash reserves it holds (both with itself and with the central bank) and the loans it has extended to individuals and businesses. Matches with (I) Reserves + Loan.

• C) Lender of the last Resort: This is one of the key functions of a country's central bank. In times of financial crisis or acute liquidity shortage, the central bank provides emergency loans to commercial banks to prevent bank runs and systemic financial collapse. Matches with (II) Central Bank of a country.

• D) M₃: M₃ is a broad monetary aggregate used to measure the money supply in an economy. It typically includes M₁ (currency with the public, demand deposits) plus time deposits with banks (fixed deposits, recurring deposits, etc.). It is often referred to as "Aggregate Monetary Resources." Matches with (III) Aggregate Monetary Resources.