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Consider the following pairs:
1. Cash Reserve Ratio (CRR) - Banks maintain a part of their total deposits with the RBI in cash form.
2. Statutory Liquidity Ratio (SLR) - Banks maintain a part of their total deposits in liquid assets with the RBI.
3. Bank Rate - The interest rate charged by the RBI on its short-term lendings.
4. Repo Rate - The rate of interest the RBI charges on long-term borrowings from banks.
How many pairs given above are correctly matched?
2. Statutory Liquidity Ratio (SLR) - Banks maintain a part of their total deposits in liquid assets with the RBI.
3. Bank Rate - The interest rate charged by the RBI on its short-term lendings.
4. Repo Rate - The rate of interest the RBI charges on long-term borrowings from banks.
How many pairs given above are correctly matched?
- a)Only one pair
- b)Only two pairs
- c)Only three pairs
- d)All four pairs
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
Consider the following pairs:1. Cash Reserve Ratio (CRR) - Banks main...
1. Cash Reserve Ratio (CRR) - Correct. Banks are required to maintain a part of their total deposits with the RBI in cash form.
2. Statutory Liquidity Ratio (SLR) - Incorrect. Banks maintain a part of their total deposits in liquid assets with themselves, not with the RBI.
3. Bank Rate - Incorrect. The Bank Rate is the interest rate charged by the RBI on its long-term lending, not short-term.
4. Repo Rate - Incorrect. The Repo Rate is the rate of interest the RBI charges on short-term borrowings, not long-term.
Only the first pair is correctly matched.
2. Statutory Liquidity Ratio (SLR) - Incorrect. Banks maintain a part of their total deposits in liquid assets with themselves, not with the RBI.
3. Bank Rate - Incorrect. The Bank Rate is the interest rate charged by the RBI on its long-term lending, not short-term.
4. Repo Rate - Incorrect. The Repo Rate is the rate of interest the RBI charges on short-term borrowings, not long-term.
Only the first pair is correctly matched.
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Consider the following pairs:1. Cash Reserve Ratio (CRR) - Banks main...
Understanding the Financial Terms
To determine how many pairs are correctly matched, let's analyze each term:
1. Cash Reserve Ratio (CRR)
- Banks must maintain a certain percentage of their total deposits in cash with the RBI.
- Correctly Matched: This statement accurately describes CRR.
2. Statutory Liquidity Ratio (SLR)
- Banks are required to maintain a portion of their total deposits in liquid assets, but not specifically with the RBI. Instead, it is maintained in the form of cash, gold, or other securities.
- Incorrectly Matched: This misrepresents SLR as it is not limited to liquid assets held with RBI.
3. Bank Rate
- This is the interest rate at which the RBI lends money to commercial banks for long-term loans.
- Incorrectly Matched: The statement should refer to long-term lending, not short-term.
4. Repo Rate
- This is the rate at which the RBI lends money to commercial banks, typically for short-term borrowing.
- Incorrectly Matched: The description should reflect that it is for short-term, not long-term borrowing.
Conclusion
- Out of the four pairs, only the first pair (CRR) is correctly matched.
- Therefore, the answer is option 'A' – Only one pair is correctly matched.
This analysis clarifies the definitions and relationships between these financial terms, ensuring a better understanding of their roles in the banking sector.
To determine how many pairs are correctly matched, let's analyze each term:
1. Cash Reserve Ratio (CRR)
- Banks must maintain a certain percentage of their total deposits in cash with the RBI.
- Correctly Matched: This statement accurately describes CRR.
2. Statutory Liquidity Ratio (SLR)
- Banks are required to maintain a portion of their total deposits in liquid assets, but not specifically with the RBI. Instead, it is maintained in the form of cash, gold, or other securities.
- Incorrectly Matched: This misrepresents SLR as it is not limited to liquid assets held with RBI.
3. Bank Rate
- This is the interest rate at which the RBI lends money to commercial banks for long-term loans.
- Incorrectly Matched: The statement should refer to long-term lending, not short-term.
4. Repo Rate
- This is the rate at which the RBI lends money to commercial banks, typically for short-term borrowing.
- Incorrectly Matched: The description should reflect that it is for short-term, not long-term borrowing.
Conclusion
- Out of the four pairs, only the first pair (CRR) is correctly matched.
- Therefore, the answer is option 'A' – Only one pair is correctly matched.
This analysis clarifies the definitions and relationships between these financial terms, ensuring a better understanding of their roles in the banking sector.
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Consider the following pairs:1. Cash Reserve Ratio (CRR) - Banks maintain a part of their total deposits with the RBI in cash form.2. Statutory Liquidity Ratio (SLR) - Banks maintain a part of their total deposits in liquid assets with the RBI.3. Bank Rate - The interest rate charged by the RBI on its short-term lendings.4. Repo Rate - The rate of interest the RBI charges on long-term borrowings from banks.How many pairs given above are correctly matched?a)Only one pairb)Only two pairsc)Only three pairsd)All four pairsCorrect answer is option 'A'. Can you explain this answer?
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Consider the following pairs:1. Cash Reserve Ratio (CRR) - Banks maintain a part of their total deposits with the RBI in cash form.2. Statutory Liquidity Ratio (SLR) - Banks maintain a part of their total deposits in liquid assets with the RBI.3. Bank Rate - The interest rate charged by the RBI on its short-term lendings.4. Repo Rate - The rate of interest the RBI charges on long-term borrowings from banks.How many pairs given above are correctly matched?a)Only one pairb)Only two pairsc)Only three pairsd)All four pairsCorrect answer is option 'A'. 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 pairs:1. Cash Reserve Ratio (CRR) - Banks maintain a part of their total deposits with the RBI in cash form.2. Statutory Liquidity Ratio (SLR) - Banks maintain a part of their total deposits in liquid assets with the RBI.3. Bank Rate - The interest rate charged by the RBI on its short-term lendings.4. Repo Rate - The rate of interest the RBI charges on long-term borrowings from banks.How many pairs given above are correctly matched?a)Only one pairb)Only two pairsc)Only three pairsd)All four pairsCorrect answer is option 'A'. 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 pairs:1. Cash Reserve Ratio (CRR) - Banks maintain a part of their total deposits with the RBI in cash form.2. Statutory Liquidity Ratio (SLR) - Banks maintain a part of their total deposits in liquid assets with the RBI.3. Bank Rate - The interest rate charged by the RBI on its short-term lendings.4. Repo Rate - The rate of interest the RBI charges on long-term borrowings from banks.How many pairs given above are correctly matched?a)Only one pairb)Only two pairsc)Only three pairsd)All four pairsCorrect answer is option 'A'. Can you explain this answer?.
Consider the following pairs:1. Cash Reserve Ratio (CRR) - Banks maintain a part of their total deposits with the RBI in cash form.2. Statutory Liquidity Ratio (SLR) - Banks maintain a part of their total deposits in liquid assets with the RBI.3. Bank Rate - The interest rate charged by the RBI on its short-term lendings.4. Repo Rate - The rate of interest the RBI charges on long-term borrowings from banks.How many pairs given above are correctly matched?a)Only one pairb)Only two pairsc)Only three pairsd)All four pairsCorrect answer is option 'A'. 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 pairs:1. Cash Reserve Ratio (CRR) - Banks maintain a part of their total deposits with the RBI in cash form.2. Statutory Liquidity Ratio (SLR) - Banks maintain a part of their total deposits in liquid assets with the RBI.3. Bank Rate - The interest rate charged by the RBI on its short-term lendings.4. Repo Rate - The rate of interest the RBI charges on long-term borrowings from banks.How many pairs given above are correctly matched?a)Only one pairb)Only two pairsc)Only three pairsd)All four pairsCorrect answer is option 'A'. 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 pairs:1. Cash Reserve Ratio (CRR) - Banks maintain a part of their total deposits with the RBI in cash form.2. Statutory Liquidity Ratio (SLR) - Banks maintain a part of their total deposits in liquid assets with the RBI.3. Bank Rate - The interest rate charged by the RBI on its short-term lendings.4. Repo Rate - The rate of interest the RBI charges on long-term borrowings from banks.How many pairs given above are correctly matched?a)Only one pairb)Only two pairsc)Only three pairsd)All four pairsCorrect answer is option 'A'. Can you explain this answer?.
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Consider the following pairs:1. Cash Reserve Ratio (CRR) - Banks maintain a part of their total deposits with the RBI in cash form.2. Statutory Liquidity Ratio (SLR) - Banks maintain a part of their total deposits in liquid assets with the RBI.3. Bank Rate - The interest rate charged by the RBI on its short-term lendings.4. Repo Rate - The rate of interest the RBI charges on long-term borrowings from banks.How many pairs given above are correctly matched?a)Only one pairb)Only two pairsc)Only three pairsd)All four pairsCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Consider the following pairs:1. Cash Reserve Ratio (CRR) - Banks maintain a part of their total deposits with the RBI in cash form.2. Statutory Liquidity Ratio (SLR) - Banks maintain a part of their total deposits in liquid assets with the RBI.3. Bank Rate - The interest rate charged by the RBI on its short-term lendings.4. Repo Rate - The rate of interest the RBI charges on long-term borrowings from banks.How many pairs given above are correctly matched?a)Only one pairb)Only two pairsc)Only three pairsd)All four pairsCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Consider the following pairs:1. Cash Reserve Ratio (CRR) - Banks maintain a part of their total deposits with the RBI in cash form.2. Statutory Liquidity Ratio (SLR) - Banks maintain a part of their total deposits in liquid assets with the RBI.3. Bank Rate - The interest rate charged by the RBI on its short-term lendings.4. Repo Rate - The rate of interest the RBI charges on long-term borrowings from banks.How many pairs given above are correctly matched?a)Only one pairb)Only two pairsc)Only three pairsd)All four pairsCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following pairs:1. Cash Reserve Ratio (CRR) - Banks maintain a part of their total deposits with the RBI in cash form.2. Statutory Liquidity Ratio (SLR) - Banks maintain a part of their total deposits in liquid assets with the RBI.3. Bank Rate - The interest rate charged by the RBI on its short-term lendings.4. Repo Rate - The rate of interest the RBI charges on long-term borrowings from banks.How many pairs given above are correctly matched?a)Only one pairb)Only two pairsc)Only three pairsd)All four pairsCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice UPSC tests.
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