IAS/PCS PATIALA Quiz Time..... Are you really a true aspirant, Check your knowledge. #7 The Reserve Bank of India on 29 January 2013 slashed its key interest rates by 0.25 per cent and released 18000 crore rupees additional liquidity into the system to perk up growth through reduced cost of borrowing. Which of the following statements in context of the same is true? i. RBI in its third quarter monetary policy review surprised the market by cutting short-term lending rate called repo, by 0.25 per cent to 7.75 per cent ii. The Cash Reserve Ratio was slashed to 4 percent iii.The repo rate cut will increase the cost of borrowing for individuals and corporate, whereas the reduction in CRR, which is the portion of deposits that banks have to park with RBI, would improve the availability of funds. iv. the stance of monetary policy in this review is intended to provide an appropriate interest rate environment to support growth as inflation risks moderate a) All the four statements are true b) Statements i, ii and iv are true c) Statements ii and iii are true d) Only statement iii is true
Posted on: Sat, 07 Sep 2013 03:41:27 +0000
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