Question

Which of the following statements is/are TRUE with respect to the Statutory Liquidity Ratio ?

I.The SLR was prescribed by Section 24 (2A) of Banking Regulation Act, 1949.

II.It represents a portion of the Net Time and Demand Liabilities (NTDL) of commercial banks that they must keep in the form of approved assets like gold, cash, government securities, or other RBI-sanctioned securities.

III.To control the inflation, i.e., by decreasing the SLR percentage, the inflation in the country can be brought under control.

A Only I Correct Answer Incorrect Answer
B Only I & II Correct Answer Incorrect Answer
C Only III Correct Answer Incorrect Answer
D Only I & III Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

The SLR was prescribed by Section 24 (2A) of Banking Regulation Act, 1949.It represents a portion of the Net Time and Demand Liabilities (NTDL) of commercial banks that they must keep in the form of approved assets like gold, cash, government securities, or other RBI-sanctioned securities.To control the inflation, i.e., by increasing the SLR percentage, the inflation in the country can be brought under control.

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