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

It may drastically reduce the liquidity to the banking system.

India s GDP growth rate increases drastically.

Foreign Institutional Investors may bring more capital in to our country.

Scheduled Commercial Banks may cut their lending rates.

When RBI reduces Statutory Liquidity Ratio by 50 basis points , which

1.	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» D. It may drastically reduce the liquidity to the banking system.