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Economics › RBIXLiquidity Management

Economics › RBIXLiquidity Management

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When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

Options

(a)

India’s GDP growth rate increases drastically

(b)

Foreign institutional Investors may bring more capital into our country

(c)

Sheduled Commercial Banks may cut their lending rates

(d)

It may drastically reduce the liquidity to the banking system

Answer

(C)