UPSC 2015EconomyModerate

When the Reserve Bank of India reduces the Statutory Liquidity Ratio 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
Monetary PolicyQuantitative Tools of RBIReserve Bank of India (RBI)Statutory Liquidity Ratio (SLR)reduces50 basis pointsScheduled Commercial Bankslending ratesliquidity

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