With respect to money and banking, what does SLR stand for?

Correct option is B

The correct answer is (b) Statutory Liquidity Ratio.
· SLR (Statutory Liquidity Ratio) refers to the minimum percentage of a commercial bank's net demand and time liabilities (NDTL) that it must maintain in the form of liquid assets, such as cash, gold, or government-approved securities, before offering credit to customers.
· The Reserve Bank of India (RBI) mandates this ratio to ensure the solvency and liquidity of banks and to control credit expansion in the economy.
Information Booster:
· Statutory Liquidity Ratio (SLR) is a tool used by the RBI to regulate the availability of funds for lending and ensure financial stability.
· Cash Reserve Ratio (CRR) is another regulatory requirement that mandates banks to hold a certain percentage of their deposits in cash.