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 liquidity to the banking system
Answer & Solution
Correct answer: C. Scheduled Commercial Banks may cut their lending rates
UPSC CSE Prelims 2015 (GS-I, Set A), Q.22. Official answer key: C.
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