When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

(a) CRR or the Cash Reserve Ratio is that ratio of the total deposits held by a bank which it has to keep with the central bank of country.

(a) Low bank rate means more liquidity in the market.

(d) Bank Rate is that rate of interest at which central bank of a country provides refinancing facilities to commercial banks. The bank rate, a benchmark rate at which RBI...

(b) SLR or the Statutory Liquidity Ratio is that ration of total deposits which a commercial bank has to maintain with itself at any given point of time in the...

(c) Economy Survey in India is published officially, every year by the Ministry of Finance, Govt. of India. and issued before the annual budget. It reviews the development in the...

(c) Federal Bank is a major Indian commercial bank in the private sector, headquartered at Kochi, Kerala.

(d) The Reserve Bank of India is the main monetary authority of the country and beside that, in its capacity as the central bank, acts as the bank of the...

(b) Because Reserve Requirements are designed as “precautionary measures” and not to stop banks from “excessive” profit. This eliminates (c) and (d)

The ratio of total deposits that a commercial bank has to keep with Reserve Bank of India is called Cash Reserve Ratio. Hence, the correct answer is option (c)

Statutory Liquidity Ratio is the fraction of total deposits of a Commercial Bank which it has to keep with itself in the form of specified liquid assets by the direction...