Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

General Knowledge

Topic

Economics

Question:

Which of the following "Reserves" is kept with the "Commercial banks"?

Options:

Maximum Reserve Ratio

Cash Reserve Ratio

Statutory Liquidity Ratio

Merchandise Reserve Ratio

Correct Answer:

Statutory Liquidity Ratio

Explanation:

SLR i.e. Statutory Liquidity Ratio is the minimum percentage of deposits that a commercial bank has to maintain in the form of liquid cash, gold or other securities. It is kept with the commercial bank itself. Whereas CRR i.e. Cash Reserve Ratio is required to be deposited with RBI.