Multiple choice

Consider the following statements about SLR:

(a) SLR is the amount of deposits banks invest in govt. securities. (b) SLR ensures that banks do not provide all the deposits as loans. (c) SLR is the percentage deposits kept with RBI.

Which of the above is correct?

  1. (a) only

  2. (b) only

  3. (c) only

  4. None of the above

  5. All of the above

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

SLR is the amount, which banks maintain in cash, gold or approved securities as per RBI stipulation so as to meet any emergency arising out of a run on bank.

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