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The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called:

a

SLR (Statutory Liquid Ratio)

b

CBR (Central Bank Reserve)

c

CLR (Central Liquid Reserve)

d

SBR (Statutory Bank Ratio)

Answer : Option A
Explanation :

Statutory liquidity ratio (SLR) refers amount that the commercial banks require to maintain in the form of gold or Government approved securities before providing credit to the customers. SLR is determined and maintained by the Reserve Bank of India in order to control the expansion of bank credit

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