Under Statutory liquidity ratio, commercial banks are required to keep a…
2023
Under Statutory liquidity ratio, commercial banks are required to keep a fraction of_________ in form of liquid assets.
- A.
current deposits
- B.
total demand and time liabilities
- C.
term deposits
- D.
saving deposits
Show answer & explanation
Correct answer: B
Under SLR, commercial banks must keep a specified fraction of their net demand and time liabilities in approved liquid assets.