Consider the following statements with regard to Statutory Liquidity Ratio (SLR): 1. To meet SLR, commercial banks can use cash only. 2. SLR is maintained by the banks with themselves. 3. SLR restricts the banks` leverage in pumping more money into the ec

examrobotsa's picture
Q: 75 (CDS-I/2010)
Consider the following statements with regard to Statutory Liquidity Ratio (SLR):
1. To meet SLR, commercial banks can use cash only.
2. SLR is maintained by the banks with themselves.
3. SLR restricts the banks' leverage in pumping more money into the economy.
Which of the statements given above is/are correct ?
If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do ? 1. Cut and optimize the Statutory Liquidity Ratio 2. Increase the Marginal Standing Facility Rate 3. Cut the Bank Rate and Repo Rate Q. Select the correct answer using the code given below : (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3

question_subject: 

Economics

question_exam: 

CDS-I

stats: 

0,237,76,40,16,237,20

keywords: 

{'statutory liquidity ratio': [0, 0, 1, 0], 'commercial banks': [0, 0, 1, 1], 'banks': [5, 6, 5, 25], 'leverage': [0, 0, 1, 0], 'slr': [0, 2, 1, 0], 'cash': [0, 1, 1, 3]}