BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The names of which of the following rates/ratios cannot be seen in financial newspapers?
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Bank Rate
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Repo Rate
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Statutory Liquidity Ratio
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Pulse Rate
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Explanation:
Detailed explanation-1: -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-2: -While the main objective of monetary policy tools like CRR and SLR is to maintain liquidity, there are multiple objectives that these tools serve as well. 1) One of the main objectives is to prevent commercial banks from liquidating their liquid assets when the RBI raises the CRR.
There is 1 question to complete.