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