Consider the following statements with regard to Statutory liquidity Ratio (SLR) : 1. To meet SLR, commercial banks can use cash only.

Question

Consider the following statements with regard to Statutory liquidity Ratio ( SLR) :

1. To meet SLR, commercial banks can use cash only.

2. SLR is maintained by the banks with themselves.

3. SLR restricts the banks' leverage in pumping more money into the economy.

Which of the statements given above is/are correct?

(a) 1, 2 and 3

(b) 1 and 3

(c) 2 and 3

(d) 2 only

Answer 1

The correct option : (c) 2 and 3