Statutory Liquidity Ratio (SLR): |
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.You need to login to perform this action.
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