Multiple choice

As per existing policies, the cash reserve ratio of scheduled banks is fixed at a certain percentage of their NDTL. What does NDTL stand for?

  1. New Demand and Tenure Liabilities

  2. Net Demand and Time Liabilities

  3. National Deposits and Total Liquidity

  4. Net Duration and Total Liquidity

  5. New Deposits and Term Liquidity
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B Correct answer
Explanation

NDTL stands for Net Demand and Time Liabilities. It comprises of time and demand deposits and certain percentage of these have to be deposited as cash reserve ratio.

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