Directions (Qs. 36 to 40) : In each of the questions below is given a statement, followed by a question. Read the statement carefully and answer the question that follows. 38. Statement : The prices of vegetables and other food articles have decreased in the recent months raising hope among policy planners that the RBI’s (Reserve Bank of India) tight grip on supply of liquid money in the market for controlling inflation may be eased. Which of the following may be a possible action of the above situation ?

• A. The Reserve Bank of India may not reduce its key interest rates in near future.
• B. The Government may step in and make certain concessions to the common people on various issues.
• C. The Reserve Bank of India may consider lowering certain rates to bring in more liquidity in the market.
• D. The RBI may wait for at least another year before taking any step.
• E. The RBI may collect more data from the market and wait for another four months to ensure they take the correct step.