Multiple choice

The banks are required to maintain a certain percentage of assets in the form of cash, balance with other banks, investment in gold and approved securities. This is called _______.

  1. <font size="2">c</font>ash reserve ratio

  2. <font size="2">s</font>tatutory liquidity ratio

  3. <font size="2">w</font>ays and means advance

  4. <font size="2">l</font>iquidity adjustment

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

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