Which among the following is most important functions being done by SLR in recent times?
[A]Control of Inflation
[B]Cushion against bank failures
[C]Financing Government deficits
[D]Adjustment of liquidity
Financing Government deficits
There are three purposes to keep SLR. These are:
We note here that SLR is not very frequently changed; so as an instrument of Credit Control; its role is limited. However, most important function SLR is doing in current times is to “finance the government deficit”.