Which of the following terms indicate a mechanism used by commercial banks for providing credit to t...........

Economic Affairs Types of Banks and Banking

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Which of the following terms indicate a mechanism used by commercial banks for providing credit to the Government?

Cash Credit Ratio

Debit Service Obligation

Liquidity Adjustment Facility

Statutory Liquidity Ratio

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Explanation:

4th option is correct.
Statutory liquidity ratio (SLR) is the Indian government term for reserve requirement that the commercial banks in India require to maintain in the form of gold, government approved securities before providing credit to the customers. Statutory Liquidity Ratio is determined by Reserve Bank of India maintained by banks in order to control the expansion of bank credit.