alleryStart learning →Raising SLR is generally used by RBI for what purpose?
ABoosting bank loans
BAdding more branches
CCurbing inflation
DLowering deposit rates
Answer & Solution
Correct answer: C. Curbing inflation
The RBI can raise SLR to control inflation and suck liquidity out of the market.
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Related questions
Under s.17, what must a profitable bank do before declaring dividend?A bank trades in groceries for profit. Which section does this breach?Which of these is an example of a non-banking financial institution?An NBFC differs from a bank in that it is what?A loan is generally non-performing when payments of interest and principal are past due byWhich formula gives SLR? (DTL = demand plus time liabilities)The statutory liquidity ratio is expressed as a percentage of which bank amount?Within how many days after month end must a bank furnish the RBI its s.24 return?