Question

    What is the full form of SLR, an important tool used by RBI

    to control money supply?
    A Statutory Liquidity Reserve Correct Answer Incorrect Answer
    B Stipulated Liquidity Reserve Correct Answer Incorrect Answer
    C Statutory Liquidity Ratio Correct Answer Incorrect Answer
    D Stipulated Liquidity Ratio Correct Answer Incorrect Answer

    Solution

    SLR stands for Statutory Liquidity Ratio. It is a monetary policy tool used by the Reserve Bank of India (RBI) to assess liquidity at banks' disposal. It represents the minimum percentage of deposits that commercial banks must maintain through gold, cash, and other securities. These deposits are maintained by the banks themselves, not with the RBI.

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