Banking Awareness - Basics Of Banking & Banking Terminology
Which banking ratio allows banks to invest in government securities and approved bonds?
Which banking ratio allows banks to invest in government securities and approved bonds?
easy Q3 of 15
Step-by-Step Solution
Step 1: Identify the investment type
The question mentions government securities and approved bonds.Step 2: Match with the ratio
SLR permits investment in liquid assets like G-secs.Final Answer:
SLR → Option CQuick Check:
SLR includes securities and gold, not cash alone ✅
Quick Trick: Investable liquid assets point to SLR.
Common Mistakes:
- Mixing SLR assets with CRR cash reserves.
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