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The Statutory Liquidity Ratio (SLR) mandates commercial banks to keep a specified percentage of their net demand and time liabilities in:

ALiquid assets like cash, gold, and approved government securities
BCash deposits with the central bank only
CForeign currency accounts
DCorporate stock equities

Explanation

SLR requires banks to hold a fraction of liabilities in safe liquid assets like government bonds, gold, or cash.

Submitted by: mcqstutor Team More Economics MCQs →

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