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Commerce · Q276

Banking and Financial Institutions

Graduate and Post Graduate · Commerce · question 276

Q276

What will be the effect of reduction in statutory liquidity ratio of banks by the central bank?

A.
Government will be able to take more loan from banks than before
B.
Government will be able to sell more debentures to banks than before
Answer
C.
Private sector will be able to get less credit from banks than before
D.
Government will be able to sell fewer securities to banks than before

Answer: Option B

Solution

Answer: Option B
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