Question 33
HardOriginal questionDeposits are ₹2,000 crore, the CRR is 5% and the SLR is 20%. The most a bank can lend from these deposits is
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
CRR = 5% of 2,000 = 100; SLR = 20% of 2,000 = 400.
Lendable = 2,000 − 100 − 400 = ₹1,500 crore.
Worth noting
₹1,900 crore takes away only the CRR and forgets the SLR.
- Concept
- CRR and SLR together
- Typical timeTypical
- 100 s
- Your timeYours
- —
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