UPSC Civil Services Prelims 2015
Question 9 of 55Indian Economy
When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?
AIndia’s GDP growth rate increases drastically
BForeign Institutional Investors may bring more capital into our country
CScheduled Commercial Banks may cut their lending rates
DIt may drastically reduce the volatility in the stock markets
Correct Answer
The correct answer is hidden
Explanation
29 words hidden ... and create conditions for banks to soften lending rates, depending on broader liquidity and risk conditions. The other ... 28 words hidden