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The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called

  1. A
    Statutory Bank Ratio
  2. B
    Statutory Liquidity Ratio
  3. C
    Central Bank Reserve
  4. D
    Central Liquid Reserve

Solution & Step-by-step Explanation

The Statutory Liquidity Ratio (SLR) is the minimum percentage of deposits that a commercial bank must maintain in the form of liquid assets such as cash, gold, or unencumbered government approved securities before providing credit to customers.

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The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called
A
Statutory Bank Ratio
B
Statutory Liquidity Ratio
C
Central Bank Reserve
D
Central Liquid Reserve

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