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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
Define bank rate.
Briefly explain two qualitative methods of credit control adopted by this institution.
______ is a quantitative method of credit control.
Which of the following is not a quantitative method of credit control?
What is meant by open market operations?
Differentiate between quantitative and qualitative methods of credit control.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
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.
Who controls the credit supply in an economy?
Identify the following Credit Control measures undertaken by the Central Bank during inflation.
The Central Bank increases the rate at which it lends to the Commercial Bank.
