Which of the following is the correct distinction between the cash reserve ratio and the statutory liquidity ratio?
- A.CRR is kept in cash with the Reserve Bank; SLR is kept by the bank itself in cash, gold or approved securities
- B.CRR is kept by the bank itself; SLR is kept with the Reserve Bank
- C.Both are kept with the Reserve Bank in cash
- D.Both are kept by the bank itself in government securities
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The cash reserve ratio is the proportion of a bank's net demand and time liabilities that it must keep as cash with the Reserve Bank of India, on which it earns no interest, and the statutory liquidity ratio is the proportion it must maintain in its own hands in the…
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