Economics · Monetary Policy
Read the following statements and choose the correct option: (A) The Statutory Liquidity Ratio (SLR) is the percentage of net demand and time liabilities that commercial banks must maintain in cash with the RBI. (B) An increase in SLR will reduce the loanable funds of banks and can help control money supply.
- 1Only (B) is correct✓
- 2Only (A) is correct
- 3Both (A) and (B) are incorrect
- 4Both (A) and (B) are correct
Correct answer
Only (B) is correct
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