| What do you understand by SLR (Statutory Liquidity Ratio) |
| 1. It is the portion of time and demand liabilities of banks that they should keep in the form of designated liquid assets. |
| 2. Reduction in SLR reduces the cost of borrowing for the government. Chose the correct statements regarding the SLR? |
A) Only 1
B) Only 2
C) Both 1 and 2
D) neither 1 nor 2
Correct Answer: C
Solution :
Statutory liquidity ratio (SLR) is the Indian government term for reserve requirement that the commercial banks in India require to maintain in the form of gold, government approved securities before providing credit to the customers.
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