ICSE Class 10 Answered
What is Statutory Liquidity Ratio?How does it affect Inflatation?
Asked by ranjanasengupta2012 | 19 Jun, 2018, 08:30: PM
Expert Answer
Statutory liquid ratio(SLR) is the minimum percentage of net demand and time liabilities which commercial banks are required to maintain with themselves.
Impact on inflation:
An increase in SLR affects the ability of the banks to provide credit to the public. This inturm will reduce the circulation of money in the economy and thus inflation is controlled and vice-versa.
Answered by Tharageswari S | 20 Jun, 2018, 11:24: AM
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