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Commerce · Q524

Banking and Financial Institutions

Graduate and Post Graduate · Commerce · question 524

Q524

When RBI reduces Statutory Liquidity Ratio by 50 or 100 basis points, which of the following should be outcome?

A.
India's GDP growth rate increases drastically
B.
Foreign Institutional Investors may bring more capital in to our country
C.
Scheduled Commercial Banks may cut their lending rates
Answer
D.
It may drastically reduce the liquidity to the banking system

Answer: Option C

Solution

Answer: Option C
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