Reserves that banks must hold in liquid form in the short term are set…

Question

Reserves that banks must hold in liquid form in the short term are set by the:

Accepted Answer

D. Statutory Liquidity Ratio

1. It applies apart from the CRR.
2. This is the Statutory Liquidity Ratio, SLR.
3. Both limit credit creation.
_Source: syllabus Introductory Macroeconomics, Chapter 3, Money and Banking._

Answer

Cash Reserve Ratio rule

Answer

Bank Rate requirement

Answer

Reverse repo rate rule

Reserves that banks must hold in liquid form in the short term are set by the:

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