Match List-I with List-II:
| List-I | List-II | ||
|---|---|---|---|
| (A) | Currency deposit ratio | (I) | Fraction of total demand and time deposits which banks are required by RBI to invest in specified liquid assets |
| (B) | Reserve deposit ratio | (II) | Ratio of money held by the public in currency to that held as deposits in commercial banks |
| (C) | Statutory Liquidity Ratio | (III) | Ratio of total money supply to the stock of high powered money |
| (D) | Money multiplier | (IV) | Fraction of their total deposits which commercial banks keep as reserves |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A) - (II), (B) - (IV), (C) - (I), (D) - (III)
Each ratio in List-I has its Glossary meaning in List-II.
| List-I | List-II | Reason |
|---|---|---|
| (A) Currency deposit ratio | (II) Ratio of money held by the public in currency to that held as deposits in commercial banks | It compares the public’s currency with its bank deposits. |
| (B) Reserve deposit ratio | (IV) Fraction of their total deposits which commercial banks keep as reserves | It is the share of deposits banks keep as reserves. |
| (C) Statutory Liquidity Ratio | (I) Fraction of total demand and time deposits which banks are required by RBI to invest in specified liquid assets | It covers deposits kept in liquid assets. |
| (D) Money multiplier | (III) Ratio of total money supply to the stock of high powered money | It shows how many times high powered money is multiplied into money supply. |
NCERT (2026-27): Glossary: “Currency deposit ratio - The ratio of money held by the public in currency to that held as deposits in commercial banks.” Glossary: “Reserve deposit ratio - The fraction of their total deposits which commercial banks keep as reserves.” Glossary: “Statutory Liquidity Ratio (SLR) - The fraction of their total demand and time deposits which the commercial banks are required by RBI to invest in specified liquid assets.” Glossary: “Money multiplier - The ratio of total money supply to the stock of high powered money in an economy.” |