Multiple choice

The increase in SLR is a measure

  1. Primarily meant to control stagflation

  2. For selective credit control to mop up excess money liquidity

  3. To boost the credit policy of bank

  4. To regulate the credit policy of bank
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

SLR (Statutory Liquidity Ratio) is a monetary policy tool used by central banks. Increasing SLR forces banks to hold more liquid assets (like gold and government securities) rather than lending them out, thereby mopping up excess money supply from the economy. This is a selective credit control measure to control inflation.

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