question_answer

As per the news published in major newspapers, the Reserve Bank of India (RBI) raised Statutory Liquidity Ratio (SLR) by 100 basis points to 25%. What was/were the reason(s) owing to which RBI raised the SLR? [Indian Bank 2010]

[a] It will help in reducing liquidity in the market.

[b] Inflation will come down substantially.

[c] It will facilitate companies to launch their IPOs as the financial climate will become conducive for the same.

A)  Only [a]

B)  Only [b]

C)  Only [a] & [b]

D)  Only [b] & [c]

E)  All [a], [b] & [c]