____ is the amount a commercial bank needs to maintain in the form of liquid assets before providing credit to its customers.

Call Money

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Term Deposit Rate

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CRR

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SLR

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Solution

The correct option is D
SLR

SLR is the amount a commercial bank needs to maintain in the form of liquid assets before providing credit to its customers.

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The percentage of demand deposits which the commercial banks are legally required to maintain as their liquid assets is called:

Q21) Banks should maintain SLR in liquid assets. Which of the following is not a constituent of SLR maintained by the banks?

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