Consider the following statements with respect to the Statutory Liquidity Ratio:
1. It is a part of bank deposits kept mandatorily with the Reserve Bank of India (RBI) in the form of highly liquid assets only.
2. It caters to the borrowings of the government.
Which of the statements given above is/are correct?
1 only
2 only
Both 1 and 2
Neither 1 nor 2
· Statutory Liquidity Ratio (SLR) forms a part of deposit that the banks have to keep as liquid assets, like cash, gold or government securities in their own vault and not with the Reserve Bank of India (RBI).
· Most of the banks keep SLR in the form of government securities, as it will earn them an interest income.
"Gold Tranche" (Reserve Tranche) refers to
Economy · Easy
Consider the following statements: 1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). 2. The WPI does not capture changes in the prices of services, which CPI does. 3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates. Which of the statements given above is/are correct?
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If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? 1. Cut and optimize the Statutory Liquidity Ratio 2. Increase the Marginal Standing Facility Rate 3. Cut the Bank Rate and Repo Rate Select the correct answer using the code given below:
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