Under Statutory Liquidity Ratio, commercial banks are required to keep a fraction of ____ in the form of liquid assets
Under Statutory Liquidity Ratio, commercial banks are required to keep a fraction of ____ in the form of liquid assets. (Choose the correct alternative)
(a) Total Deposits
(b) Term Deposits
(c) Total Demand and Term Deposits
(d) Current Deposits
Anurag Pathak Changed status to publish January 3, 2024
Ans – (a) or (c)
Explanation:-
Statutory Liquidity Ratio (SLR):
If refers to the minimum percentage of net demand and time deposit liabilities that commercial banks are required to maintain with themselves.
SLR is maintained in the form of designated liquid assets such as excess reserves.
Anurag Pathak Changed status to publish January 3, 2024
