Question

Consider the following statements about ‘Statutory Liquidity Ratio (SL

  • R ’: 1.    SLR is the percentage of NDTL that a bank must keep in safe and liquid assets such as unencumbered government securities, cash, and gold. 2.    SLR changes frequently have an impact on the availability of resources in the banking system for lending to the private sector. Which of the statements given above is/are not correct?
A 1 only
B 2 only
C Both 1 and 2
D Neither 1 nor 2
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