Q. When the Reserve Bank of India reduces the Statutory Liquidity by 50 basis points, which of the following is likely to happen?
[A] India’s GDP growth rate increases drastically
[B] Foreign Institutional Investors may bring more capital into our country
[C] Scheduled Commercial Banks may cut their lending rates
[D] It may drastically reduce the liquidity to the banking system.
Answer:C
Notes:
Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS
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