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UPSC 1998: The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called
(a)SBR (Statutory Bank Ratio)
(b)SLR (Statutory Liquid Ratio)
(c)CBR (Central Bank Reserve)
(d)CLR (Central Liquid Reserve)
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Not attemptedCorrect Answer: (b) SLR (Statutory Liquid Ratio)
The Statutory Liquidity Ratio (SLR) is the legally mandated proportion of a bank’s total demand-and-time liabilities that must be kept in liquid assets—cash in hand, gold or approved securities. It represents the prescribed ‘ratio between cash in hand and total assets’ mentioned in the question; the other abbreviations are not used in Indian banking regulation. ([edurev.in](https://edurev.in/t/235318/UPSC-Previous-Year-Questions-Prelims-Banking-in-India?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 1998 Indian Economy question?▼
The correct answer is option (b): SLR (Statutory Liquid Ratio). Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Monetary Policy & Money Supply question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 1998, GS Paper 1, as Question 76. It falls under Indian Economy > Monetary Policy & Money Supply.
What is the difficulty level of this UPSC question?▼
This question is rated "easy". It tests basic recall and most well-prepared aspirants should answer it correctly.
How many UPSC Prelims questions have been asked from Monetary Policy & Money Supply?▼
UPSC has asked 27 questions from Monetary Policy & Money Supply (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.