Statutory Liquidity Ratio is the percentage of NDTL that banks must maintain in: MCQ with Answer and Explanation

Statutory Liquidity Ratio is the percentage of NDTL that banks must maintain in:
A. cash with RBI only
B. gold, cash and approved securities
C. foreign exchange only
D. loans to government
Answer: Option B
Solution (By JKSSB Mock Tests)
SLR requires banks to maintain liquid assets such as cash, gold and approved securities.

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Practice More Economy Set 1 Questions

Question #1
The 'Belt and Road Initiative' was announced by China in which year?
A. 2013
B. 2017
C. 2015
D. 2008

Correct Answer: Option A


Explanation:
Belt and Road Initiative was announced in 2013.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'gender budgeting' in India refers to:
A. analysis of budget allocations from a gender perspective
B. budget for defence
C. budget for women only
D. tax on women

Correct Answer: Option A


Explanation:
Gender budgeting involves analyzing government budgets for their impact on women and girls.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a characteristic of the 'Mundell-Tobin Effect'?
A. Higher inflation can reduce the real interest rate and raise capital accumulation in some portfolio-balance models
B. Only monetary neutrality holds
C. Inflation has no effect on capital accumulation
D. Inflation always raises the real interest rate

Correct Answer: Option A


Explanation:
The Mundell-Tobin effect suggests that an increase in expected inflation may lower the real return on money, inducing a portfolio shift toward real capital and thereby raising steady-state capital intensity.

This question belongs to: Economy GK Economy Set 1