Question : Legal reserve requirement involves-
Option 1: Cash reserve ratio
Option 2: Statutory liquidity ratio
Option 3: Both A and B
Option 4: Neither A and B.
Correct Answer: Both A and B
Solution : Legal reserve requirements involves cash reserve ratio and statutory liquidity ratio. Hence, Option C is correct.
Question : What is the full form of SLR?
Option 1: Some Liquidity Ratio
Option 2: Super Liquidity Ratio
Option 3: Statutory Liquidity Ratio
Option 4: Some Liabilities and returns
Option 1: Statutory Liquidity Ratio
Option 2: Scheduled Liquidity Ratio
Option 3: Statutory Loan Ratio
Option 4: Scheduled Loan 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 : ___________ is the rate at which the central bank borrows money from commercial banks.
Option 1: Repo rate
Option 2: Reverse repo rate
Option 3: Cash reserve ratio (CRR)
Option 4: Statutory liquidity ratio (SLR)
Question : To correct the situation of the deflationary gap, the central bank:
Option 1: increases margin requirement
Option 2: decreases margin requirement
Option 3: increases cash reserve ratio
Option 4: both (a) and (c)
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