Question

Match List-I with List-II \[ \begin{array}{|c|l|c|l|} \hline \textbf{List-I} & & \textbf{List-II} & \\ \hline (A) & \text{Cash Reserve Ratio (CRR)} & (I) & \text{Central Bank of the Country} \\ \hline (B) & \text{Statutory Liquidity Ratio (SLR)} & (II) & \text{The interest rate at which the money is lent by Central Bank} \\ \hline (C) & \text{Lender of last resort} & (III) & \text{Percentage of deposits which must be kept as cash reserves with the Central Bank} \\ \hline (D) & \text{Repo Rate} & (IV) & \text{Reserves in liquid form in the short term} \\ \hline \end{array} \]

• (A) – (II), (B) – (III), (C) – (I), (D) – (IV)
• (A) – (III), (B) – (IV), (C) – (I), (D) – (II)
• (A) – (IV), (B) – (I), (C) – (II), (D) – (III)
• (A) – (III), (B) – (IV), (C) – (I), (D) – (II)

Hint:

Remember: CRR = cash with RBI, SLR = liquid assets, Repo = RBI lending rate, Lender of last resort = Central Bank safeguard.

Answer 1

The Correct Option is B

Step 1: Understand each term.
- CRR (Cash Reserve Ratio): Portion of commercial bank deposits that must be kept as cash reserves with the RBI.
- SLR (Statutory Liquidity Ratio): Portion of deposits that must be kept in liquid assets like cash, gold, or approved securities.
- Lender of last resort: Role of the Central Bank (RBI in India) to provide emergency funds when banks face liquidity crisis.
- Repo Rate: Rate at which the Central Bank lends money to commercial banks against securities.
Step 2: Match with List-II.
- (A) CRR → (III) Cash reserves with the Central Bank.
- (B) SLR → (IV) Reserves in liquid form.
- (C) Lender of last resort → (I) Central Bank of the country.
- (D) Repo Rate → (II) Interest rate charged by Central Bank.
Step 3: Verify with options.
This matches option (2).
Final Answer: \[ \boxed{(A) – (III), \; (B) – (IV), \; (C) – (I), \; (D) – (II)} \]