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  • Reserve Bank of India decides the SLR rate. However, most banks currently maintain a higher SLR rate than required because
    Options:
    a
    Lack of credible lending options
    b
    To make higher profit on interest rate
    c
    To control the inflation in the Indian Market
    d
    Incomplete KYC norms of most of the Account holders


    Consider the following statements regarding the Special Drawing Rights (SDRs)

    1. The SDR is an international reserve asset, created by the IMF

    2. IMF allocate SDRs to member countries in proportion to their IMF quotas only

    3. SDR as a unit of account are concerned solely with the IMF

    Which of the following statements is/are correct?

    Options:
    a
    1 only
    b
    1 and 3 only
    c
    2 and 3 only
    d
    1, 2 and 3

    @raushankumar bro what should be answer to these
    I just have seen ur comment.
    Question 1) Answer should be 'A' .
    SLR mainly include government bond and securities.

    option B is wrong because the rate offered on the government bond is around 8-9 % and which is definitely less than the loan given by the bank to the people and corporate which is around 12-14%.
    Option C-Bank have no such function of controlling the inflation.
    Option D-Absurd option.
    and we all now that NPA is a huge problem for bank . so , they can't lend to the industries and if they don't give loan to anyone then how they will pay back the interest rate to current and saving account holder . Thus, they invest in government bond(SDR). so that at least they can earn at least 8-9 % interest if not 12-14%.
    Question has been picked from last year Economic survey.

    2 Question
    1st statement is correct.
    2nd is wrong because it counts the openness of the economy too.
    3rd , i don't know.
    so, the answer should be either A or B and i want to go with A.
    Thanks bro
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