| 1. To meet SLR, Commercial banks can use cash only. |
| 2. SLR is maintained by the banks with themselves. |
| 3. SLR restricts the bank?s leverage in pumping more money into the economy |
A) 1, 2 and 3
B) 1 and 3
C) 2 and 3
D) only 2
Correct Answer: C
Solution :
SLR used by bankers indicates the minimum percentage of deposits that the banks have to maintain in the form of gold. Cash or other approved securities.
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