2010 · Q91
Consider the following statements with regard to Statutory Liquidity Ratio (SLR) :
- 1To meet SLR, commercial banks can use cash only.
- 2SLR is maintained by the banks with themselves.
- 3SLR restricts the banks’ leverage in pumping more money into the economy.
Which of the statements given above is/are correct?
General KnowledgeEconomics
- A1, 2 and 3
- B1 and 3 only
- C2 send 3 only
- D2 only
Explanation
SLR can be met with cash, gold and approved securities (1 false); it is maintained by banks with themselves (2 true) and it limits leverage (3 true).