Under Statutory Liquidity Ratio, commercial banks are required to keep a function of ________ in the form of liquid assets.

Question

Read the following text carefully:
“The Reserve Bank of India (RBI) announced a 50 basis point Repo Rate cut to 5.50% from 6%.”
In the light of the given text and common understanding, answer the following questions:

[(i)] Identify the economic issue indicated in the above text.
[(ii)] Explain the likely causes and consequences of this step of RBI on the economy.

Answer 1

The correct option is (A) :Total deposits.

Under Statutory Liquidity Ratio, commercial banks are required to keep a function of ________ in the form of liquid assets.

The Correct Option is A

Solution and Explanation

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