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Questions
Define the term Statutory Liquidity Ratio.
What is meant by Statutory Liquidity Ratio?
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Solution
Statutory Liquidity Ratio (SLR) is the minimum percentage of deposits that a commercial bank has to maintain in the form of specified liquid assets with themselves.
RELATED QUESTIONS
Briefly explain two qualitative methods of credit control adopted by this institution.
Which of the following is a selective/qualitative method of credit control.
Define qualitative credit control policy of the RBI.
During deflation, the Central Bank usually ______.
During inflation, the central bank usually:
State the impact of an increase in Cash Reserve Ratio on loanable funds.
Define the following term:
Margin Requirements.
The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.
Which of the following statements are correct and which are incorrect? Give reasons.
- Central bank is a currency authority.
- Bank rate is a qualitative method of credit control.
- Quantitative methods regulate direction of credit.
- Bank rate is the rate at which commercial banks give loans to the public.
- Central bank should sell government securities when credit is to be expanded.
What do you mean by credit control?
