BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The names of which of the following rates/ratios cannot be seen in financial newspapers? [Corporation Bank 2011]
A
Bank Rate
B
Repo Rate
C
Statutory Liquidity Ratio
D
Pulse Rate
Explanation: 

Detailed explanation-1: -Cash Reserve Ratio Was this answer helpful?

Detailed explanation-2: -Ans. Cash Reserve Ratio (CRR) is the percentage of money, which a bank has to keep with RBI in the form of cash. Whereas, Statutory Liquidity Ratio (SLR) is the proportion of liquid assets to time and demand liabilities.

Detailed explanation-3: -CRR is a reserve maintained by banks with the RBI. It is a percentage of the banks’ deposits maintained in cash form. SLR is an obligatory reserve that commercial banks must maintain themselves. It is a percentage of commercial banks’ net demand and time liabilities, maintained as approved securities.

Detailed explanation-4: -SLR is held in gold, money, and other securities approved by RBI. CRR helps to control the flow of money. SLR helps to meet the sudden demand of depositors. CRR has to be maintained with RBI.

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