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Money and Banking — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsMoney and Banking3 Marks
Question
Explain the components of LRR.OR
Explain the distinction between SLR and CRR.
✓

Answer

Two components of LRR are CRR and SLR. Under CRR, the banks are required to deposit a percentage of their net demand and time deposits with the Central Bank whereas under SLR, the banks are required to maintain a specified percentage of their net deposits in the form of designated liquid assets.

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