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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
The rate of which commercial banks borrow from the Central Bank is the:
Bank rate is the rate at which:
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | A rate of interest at which the central bank (RBI) lends money to member commercial banks to meet they long term needs. | A. | Cash Reserve Ratio |
| (ii) | A rate of interest at which RBI lends money to commercial banks to meet their short term needs. | B. | Statutory liquidity ratio |
| (iii) | A minimum percentage of total deposits kept by banks with the Central Bank. | C. | Repo rate |
| (iv) | A minimum percentage of total deposits to be kept by banks inform of liquid assets with themselves. | D. | Bank rate |
Observe the relationship of the first pair of words and complete the second pair.
Quantitative method of credit control by the central bank : Bank rate.
Quantitative method of credit control by the central bank :
What is meant by open market operations?
The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.
What is the credit supply policy in an economy called?
Which are qualitative methods of credit control?
Give an example of margin requirements.
Describe two quantitative credit control measures of the Central Bank.
