Suppose the initial deposits are Rs.1000 cr and the Statuary Liquidity Ratio is 20%. How much loan the bank can give from the given initial deposits?
Suppose the initial deposits are Rs.1000 cr and the Statuary Liquidity Ratio is 20%. How much loan the bank can give from the given initial deposits?
Solution
✅ Correct Option: 1
With SLR of 20%, the bank must keep cr as reserves and can lend the rest.
Loanable amount cr.
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