Question : In the case of Statutory Liquidity Ratio, the commercial banks are supposed to keep a ratio of ________ in the form of liquid assets.
Option 1: Total deposits
Option 2: Term deposits
Option 3: Saving deposits
Option 4: Current deposits
Correct Answer: Total deposits
Solution : The correct answer is (a). Total deposits.
Statutory Liquidity Ratio (SLR) is a minimum percentage of a bank's total deposits that it has to keep in the form of liquid assets. Liquid assets are assets that can be easily converted into cash, such as cash, government securities, and gold.
The SLR is set by the central bank of a country to control the money supply in the economy. When the central bank raises the SLR, it reduces the amount of money that banks can lend to businesses and consumers. This helps to control inflation.
When the central bank lowers the SLR, it increases the amount of money that banks can lend to businesses and consumers. This can help to stimulate economic growth.
So, the answer is Total deposits.
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 : ---------------------ratio explains the relationship between current assets and current liabilities of a business.
Option 1: Liquid ratio
Option 2: Current ratio
Option 3: Current assets ratio
Option 4: Current liabilities ratio
Question : The ratio of cash reserves to demand and time deposits of commercial banks is known as ___________.
Option 1: Cash reserve ratio (CRR)
Option 2: Statutory liquidity ratio (SLR)
Option 3: Repo rate
Option 4: Reverse repo rate
Question : Which of the following is the correct formula for "Current Ratio"?
Option 1: Liquid Assets/Current Liabilities
Option 2: Current Assets/Current Liabilities
Option 3: Fixed Assets/Current Assets
Option 4: Liquid Assets/Current Assets
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