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Discussion

When RBI reduces 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 in to our country.
  • C.Scheduled Commercial Banks may cut their lending rates.
  • D.It may drastically reduce the liquidity to the banking system.

Answer: C

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