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When the Reserve Bank of India reduces the Statutory Liquidity 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
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
When the Reserve Bank of India reduces the Statutory Liquidity by 50 b...
The SLR cut by the RBI is likely to give more elbow room for banks to cut rates. 
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Most Upvoted Answer
When the Reserve Bank of India reduces the Statutory Liquidity by 50 b...
A) India's commercial banks will have more liquidity available to lend to businesses and individuals. This can stimulate borrowing and investment in the economy, leading to increased economic activity and potentially higher inflation.
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When the Reserve Bank of India reduces the Statutory Liquidity by 50 basis points, which of the following is likely to happen?a)India’s GDP growth rate increases drasticallyb)Foreign Institutional Investors may bring more capital into our countryc)Scheduled Commercial Banks may cut their lending ratesd)It may drastically reduce the liquidity to the banking systemCorrect answer is option 'C'. Can you explain this answer?
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When the Reserve Bank of India reduces the Statutory Liquidity by 50 basis points, which of the following is likely to happen?a)India’s GDP growth rate increases drasticallyb)Foreign Institutional Investors may bring more capital into our countryc)Scheduled Commercial Banks may cut their lending ratesd)It may drastically reduce the liquidity to the banking systemCorrect answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about When the Reserve Bank of India reduces the Statutory Liquidity by 50 basis points, which of the following is likely to happen?a)India’s GDP growth rate increases drasticallyb)Foreign Institutional Investors may bring more capital into our countryc)Scheduled Commercial Banks may cut their lending ratesd)It may drastically reduce the liquidity to the banking systemCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When the Reserve Bank of India reduces the Statutory Liquidity by 50 basis points, which of the following is likely to happen?a)India’s GDP growth rate increases drasticallyb)Foreign Institutional Investors may bring more capital into our countryc)Scheduled Commercial Banks may cut their lending ratesd)It may drastically reduce the liquidity to the banking systemCorrect answer is option 'C'. Can you explain this answer?.
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