cash ratio
noun[C]
ukus(alsocash deposit ratio)BANKING,FINANCE
theamountofmoneyabankshould haveavailableas apercentageof thetotalamountofmoneyitscustomershavepaidinto thebank. Thisamountiscalculatedso thatcustomerscan besurethat they will beableto taketheirmoneyout of thebankif theywantto:
Thecentralbankimposesa 10%cashratiooncommercialbanks.
Compare
liquidity ratio