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Determinants of Money Supply

refers to tha...

Question

_________ refers to that portion of total deposits which a commercial bank has to keep with itself in the form of liquid assets.

A

CRR

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B

SLR

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C

Bank rate

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D

Repo rate

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Solution

The correct option is B SLR
Statutory Liquidity Ratio (SLR) refers to that portion of total deposits of a commercial bank which it has to keep with itself in the form of liquid assets. These liquid assets refers to certain securities/instruments that are held by banks as stipulated by the Central Bank.

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