In the context of banking, the Statutory Liquidity Ratio (SLR) is maintained in the form of: MCQ with Answer and Explanation

In the context of banking, the Statutory Liquidity Ratio (SLR) is maintained in the form of:
A. Only foreign exchange
B. Only equity shares
C. Only cash
D. Cash, gold and approved securities
Answer: Option D
Solution (By JKSSB Mock Tests)
Banks are required to maintain SLR in the form of cash, gold or unencumbered approved securities as a percentage of their Net Demand and Time Liabilities.

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Practice More Economy Set 1 Questions

Question #1
The reverse repo in monetary policy means the RBI:
A. buys government bonds outright
B. reduces CRR
C. lends funds to banks against securities
D. sells securities to banks with an agreement to repurchase them later, absorbing liquidity

Correct Answer: Option D


Explanation:
In reverse repo, the RBI sells securities to banks with an agreement to repurchase later, absorbing liquidity.

This question belongs to: Economy GK Economy Set 1
Question #2
Expenditure on construction of a national highway is classified as:
A. non-plan expenditure
B. revenue expenditure
C. capital expenditure
D. transfer payment

Correct Answer: Option C


Explanation:
Construction of a highway creates a capital asset and is capital expenditure.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a classification of taxes based on their impact on income distribution?
A. Only ad valorem and specific
B. Progressive, proportional and regressive
C. Only direct and indirect
D. Only central and state

Correct Answer: Option B


Explanation:
Taxes are classified as progressive (rate rises with income), proportional (constant rate) or regressive (rate falls with income) according to their effect on income distribution.

This question belongs to: Economy GK Economy Set 1