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.

Answer: B. total demand and time liabilitiesUnder SLR, commercial banks must keep a specified fraction of their net demand and time liabilities in approved liquid assets.

  1. A.

    current deposits

  2. B.

    total demand and time liabilities

  3. C.

    term deposits

  4. D.

    saving deposits

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Correct answer: B

Under SLR, commercial banks must keep a specified fraction of their net demand and time liabilities in approved liquid assets.

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