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The statutory requirement for banks to maintain a certain percentage of their net demand and time liabilities in the form of cash is called:
  • a)
    Cash Reserve Ratio (CRR)
  • b)
    Statutory Liquidity Ratio (SLR)
  • c)
    Bank Rate
  • d)
    Reverse Repo Rate
Correct answer is option 'B'. Can you explain this answer?
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The statutory requirement for banks to maintain a certain percentage o...
The statutory requirement for banks to maintain a certain percentage of their net demand and time liabilities in the form of cash is called the Statutory Liquidity Ratio (SLR). The SLR is a regulation imposed by the central bank that determines the minimum percentage of their deposits that banks must hold in the form of cash, gold, or government-approved securities. It helps ensure the liquidity and stability of banks and the banking system.
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The statutory requirement for banks to maintain a certain percentage of their net demand and time liabilities in the form of cash is called:a)Cash Reserve Ratio (CRR)b)Statutory Liquidity Ratio (SLR)c)Bank Rated)Reverse Repo RateCorrect answer is option 'B'. Can you explain this answer?
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