Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsBANKING AND MONETARY POLICY2 Marks
Question
What is Statutory Liquidity Ratio $(SLR)?$
✓
Answer
Under the Banking Regulation Act, all the banks have to maintain equal to and not less than $25\%$ of their total deposits in the form of cash, gold and unencumbered approved securities.
$SLR$ is increased during inflation so that people get lesser credit and during deflation $SLR$ is decreased.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.