Under Statutory Liquidity Ratio, commercial banks are required to keep a fraction of _____ in the form of liquid assets.

Total deposits

The correct answer is Option (1) → Total deposits

Under Statutory Liquidity Ratio (SLR), commercial banks are required to keep a fraction of total deposits in the form of liquid assets. This ratio is set by the central bank (in India, the Reserve Bank of India) and mandates that a certain percentage of a bank's net demand and time liabilities (NDTL) must be maintained in specified liquid assets like cash, gold, or government-approved securities.