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Consider the following statements.
1. The statutory liquidity ratio (SLR) is the ratio of the total deposits of a bank which is to be maintained by the bank with itself in cash and non-cash form.
2. It is currently in the range of 18 to 40 per cent.
Which of these statements is/are correct?
- a)1 Only
- b)2 Only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements.1. The statutory liquidity ratio (SL...
Statutory Liquidity Ratio (SLR)
The Statutory Liquidity Ratio (SLR) is a reserve requirement that commercial banks are required to maintain in the form of liquid assets such as cash, gold, or government securities before providing credit to customers. The SLR is determined by the Reserve Bank of India (RBI) and is a tool used by the central bank to regulate the availability of credit in the economy.
Statement 1: Correct
The first statement is correct. The SLR is the ratio of a bank's total deposits that must be maintained by the bank in the form of liquid assets such as cash, gold, or government securities. This requirement ensures that banks have enough liquidity to meet their obligations to depositors.
Statement 2: Correct
The second statement is also correct. The SLR is currently in the range of 18 to 40 per cent. This means that for every Rs. 100 deposited by customers, banks are required to maintain Rs. 18 to Rs. 40 as liquid assets.
Conclusion
Both statements are correct. The SLR is an important tool used by the RBI to regulate the availability of credit in the economy. By requiring banks to maintain a certain percentage of their deposits as liquid assets, the RBI ensures that banks have enough liquidity to meet their obligations to depositors.
The Statutory Liquidity Ratio (SLR) is a reserve requirement that commercial banks are required to maintain in the form of liquid assets such as cash, gold, or government securities before providing credit to customers. The SLR is determined by the Reserve Bank of India (RBI) and is a tool used by the central bank to regulate the availability of credit in the economy.
Statement 1: Correct
The first statement is correct. The SLR is the ratio of a bank's total deposits that must be maintained by the bank in the form of liquid assets such as cash, gold, or government securities. This requirement ensures that banks have enough liquidity to meet their obligations to depositors.
Statement 2: Correct
The second statement is also correct. The SLR is currently in the range of 18 to 40 per cent. This means that for every Rs. 100 deposited by customers, banks are required to maintain Rs. 18 to Rs. 40 as liquid assets.
Conclusion
Both statements are correct. The SLR is an important tool used by the RBI to regulate the availability of credit in the economy. By requiring banks to maintain a certain percentage of their deposits as liquid assets, the RBI ensures that banks have enough liquidity to meet their obligations to depositors.
Community Answer
Consider the following statements.1. The statutory liquidity ratio (SL...
Correct answer to this should be (d) neither 1 nor 2 because SLR can be maintained in cash form also. and there's no lower limit to it
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Consider the following statements.1. The statutory liquidity ratio (SLR) is the ratio of the total deposits of a bank which is to be maintained by the bank with itself in cash and non-cash form.2. It is currently in the range of 18 to 40 per cent.Which of these statements is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
Question Description
Consider the following statements.1. The statutory liquidity ratio (SLR) is the ratio of the total deposits of a bank which is to be maintained by the bank with itself in cash and non-cash form.2. It is currently in the range of 18 to 40 per cent.Which of these statements is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements.1. The statutory liquidity ratio (SLR) is the ratio of the total deposits of a bank which is to be maintained by the bank with itself in cash and non-cash form.2. It is currently in the range of 18 to 40 per cent.Which of these statements is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1. The statutory liquidity ratio (SLR) is the ratio of the total deposits of a bank which is to be maintained by the bank with itself in cash and non-cash form.2. It is currently in the range of 18 to 40 per cent.Which of these statements is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
Consider the following statements.1. The statutory liquidity ratio (SLR) is the ratio of the total deposits of a bank which is to be maintained by the bank with itself in cash and non-cash form.2. It is currently in the range of 18 to 40 per cent.Which of these statements is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements.1. The statutory liquidity ratio (SLR) is the ratio of the total deposits of a bank which is to be maintained by the bank with itself in cash and non-cash form.2. It is currently in the range of 18 to 40 per cent.Which of these statements is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1. The statutory liquidity ratio (SLR) is the ratio of the total deposits of a bank which is to be maintained by the bank with itself in cash and non-cash form.2. It is currently in the range of 18 to 40 per cent.Which of these statements is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
Solutions for Consider the following statements.1. The statutory liquidity ratio (SLR) is the ratio of the total deposits of a bank which is to be maintained by the bank with itself in cash and non-cash form.2. It is currently in the range of 18 to 40 per cent.Which of these statements is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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