The main objective of CRR and SLR is to ensure- i. Liquidity position of bank ii. Financial position of…
CRR requires banks to hold cash reserves with the Reserve Bank, while SLR requires holdings of specified liquid assets. These reserve requirements support liquidity and…
Choose your answer
The main objective of CRR and SLR is to ensure-
i. Liquidity position of bank
ii. Financial position of bank
iii. Profit position of a bank
Answer and explanation
Correct answer A
CRR requires banks to hold cash reserves with the Reserve Bank, while SLR requires holdings of specified liquid assets. These reserve requirements support liquidity and regulate credit creation; they are not designed primarily to ensure bank profits.
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Telangana SET (TG SET)