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Miscellaneous·2015·Easy

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

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

Options

  1. a.

    India’s GDP growth rate increases drastically

  2. b.

    Foreign Institutional Investors may bring more capital into our country

  3. c.

    Scheduled Commercial Banks may cut their lending rates

    Correct answer
  4. d.

    It may drastically reduce liquidity to the banking system

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