Multiple choice

The financial turmoil all over the world in recent past has put some effect on Indian economy. What measure(s) did RBI take to improve the situation ?

  1. SLR has been reduced by one percentage points and at present is 24%
  2. An advance of Rs. 25,000 crore provided to banks/financial institutions under the Agricultural debt waiver and Debt Relief Schemes.
  3. RBI allowed banks to raise their capital by issuing Investment Bonds. Almost all big banks have issued such bond in recent past.

  1. Only 1

  2. Only 3

  3. Only 1 and 2

  4. All 1, 2 and 3
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

During the 2008 financial crisis, the RBI reduced the SLR to 24% to inject liquidity into the banking system. The other options involve government fiscal measures rather than direct RBI liquidity actions.

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