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
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Correct Answer: total demand and term deposits
Solution : The correct answer is total demand and term deposits.
The Statutory Liquidity Ratio (SLR) is a "monetary policy instrument" of the "RBI." This requires "commercial banks" to hold a specified percentage of total "demand" and "time deposits" as liquid assets in their vault. The goals of keeping the Statutory Liquidity Ratio (SLR) are to increase or decrease the flow of bank credit and to prevent commercial banks from "over-liquidating."
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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
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 : M2 is one of the measures of the money supply. M2 is the sum of M1+______.
Option 1: saving deposits with the post office
Option 2: National Saving Certificates
Option 3: coins and currency notes
Option 4: demand deposits
Question : Which of the following sponsors Regional Rural Banks (RRBs)?
Option 1: RBI
Option 2: Foreign banks
Option 3: National commercial banks
Option 4: Co-operative banks
Question : Which of the following are non-chequeable deposits?
Option 1: Current deposits
Option 2: Fixed deposits
Option 3: Savings deposits
Option 4: None of the above
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