Statement 1: Statutory Liquidity Ratio is determined by the Reserve Bank of India.
Statement 2: Reserve Bank of India accepts receipts and makes payments for the government and carries out exchange, remittance and other banking operations.
(a) Both the Statements are true
(b) Both the Statements are false
(c) Statement 1 is true and Statement 2 is false
(d) Statement 2 is true and Statement 1 is false
Ans – (a)
Statement 1 is correct as the statutory liquidity ratio is one of the tools of the monetary policy to control the credit creation.
the monetary policy is determined by the Reserve Bank of India.
Statement 2 is also correct as the Reserve Bank of India is the bank of the government and banker to the banks.