Match the items of List I with the items of List II and choose the correct answer from the code given below. List I List II (a) NPA (i) The percentage of deposits to be kept with RBI in the form of cash. (b) SLR (ii) The rate at which RBI lends money to commercial banks. (c) Repo Rate (iii) Loans and advances not paid for more than 90 days (d) CRR (iv) The percentage of net demand and time liabilities to be kept in the form of liquid assets.
Match the items of List I with the items of List II and choose the correct answer from the code given below. List I List II (a) NPA (i) The percentage of deposits to be kept with RBI in the form of cash. (b) SLR (ii) The rate at which RBI lends money to commercial banks. (c) Repo Rate (iii) Loans and advances not paid for more than 90 days (d) CRR (iv) The percentage of net demand and time liabilities to be kept in the form of liquid assets. Correct Answer (a) - (iii), (b) - (iv), (c) - (ii), (d) - (i)
The following is the explanation of the right answer.
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List I |
List II |
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NPA |
A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 90 days, but this can depend on the contract terms. |
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SLR |
SLR or statutory liquidity ratio is the minimum percentage of deposits that a bank has to maintain in form of gold, cash, or other approved securities. The current SLR rate is 21.50% |
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Repo Rate |
Repo rate is the rate at which the central bank of a country (Reserve Bank of India in the case of India) lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation. |
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CRR |
CRR or cash reserve ratio is the minimum proportion/percentage of a bank's deposits to be held in the form of cash. The current CRR is 3%. |
Therefore, option 2 is the correct answer