Question : Banks are required to keep some reserves in liquid form with themselves. This is called ______.
Option 1: marginal stability scheme
Option 2: statutory liquidity ratio
Option 3: open market operations
Option 4: legal deposit ratio
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Correct Answer: statutory liquidity ratio
Solution : The correct answer is the statutory liquidity ratio.
The minimal percentage of deposits that commercial banks are required to keep in their vaults as cash, gold assets, or government-approved securities is known as the Statutory liquidity ratio (SLR). The banks, not the Reserve Bank of India, are required to preserve these deposits. The bank's capacity to stimulate the economy with new loans is diminished by an increase in this ratio.
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Question : Under the Statutory liquidity ratio, commercial banks are required to keep a fraction of ____ in the form of liquid assets.
Option 1: current deposits
Option 2: total demand and term deposits
Option 3: term deposits
Option 4: saving deposits
Question : The reserve held by Commercial Banks over and above the statutory minimum with the RBI are called:
Option 1: Cash reserve
Option 2: Deposits reserves
Option 3: excess reserves
Option 4: momentary reserves
Question : The interest rate at which the Reserve Bank of India provides overnight liquidity to banks is called ________.
Option 1: Reverse repo rate
Option 2: Marginal standing facility rate
Option 3: Repo rate
Option 4: Leverage rate
Question : Which of the following is one of the Open Market Operations of the Reserve Bank of India?
Option 1: Buying and selling of bonds issued by the Government in the open market
Option 2: Buying and selling of bonds issued by commercial banks in the open market
Option 3: Only buying of bonds issued by the Government in the open market
Option 4: Only selling of bonds issued by the Government in the open market
Question : A colloidal system in which a liquid is dispersed in a liquid is called
Option 1: gel
Option 2: emulsion
Option 3: sol
Option 4: precipitate
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