UPSC Prelims PYQ 1998: Name of the bank cash-to-assets ratio
The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called
- SBR (Statutory Bank Ratio)
- SLR (Statutory Liquid Ratio)
- CBR (Central Bank Reserve)
- CLR (Central Liquid Reserve)
Explanation
Option (b) is correct
- SLR (Statutory Liquidity Ratio) is the minimum percentage of deposits that banks must maintain in the form of liquid assets such as cash, gold, or government securities. It is regulated by the Reserve Bank of India.
Answer: (b) SLR (Statutory Liquid Ratio)
