Multiple choice

Statutory liquidity ratio (SLR) means

  1. minimum cash reserve with RBI

  2. minimum liquid assets in the form of cash, gold and approved securities

  3. a maximum ratio of cash holding to total liabilities of bank

  4. a minimum ratio of cash holding to total liabilities of bank
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Statutory liquidity ratio (SLR) is a term for reserve requirement that the commercial banks in India require to maintain in the form of gold and/or government approved securities before providing credit to the customers.

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