Money, Banking, and Monetary Policy · Term 1

Quantitative Tools of Monetary Policy: CRR & SLR

Examining Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) and their role in credit control.

Key Questions

  1. Compare the effectiveness of CRR and SLR in controlling the money supply.
  2. Explain how changes in CRR directly affect the lending capacity of commercial banks.
  3. Evaluate the implications of a high SLR for commercial bank profitability and credit availability.

CBSE Learning Outcomes

CBSE: Money and Banking - Class 12
Class: Class 12
Subject: Economics
Unit: Money, Banking, and Monetary Policy
Period: Term 1

Suggested Methodologies

Problem-Based Learning

An ill-structured real problem drives students to discover what they need to learn

35–60 min

Learn more about Problem-Based Learning

Chalk Talk

Silent, written whole-class discussion on large paper

15–30 min

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