Question

    What step has the Reserve Bank of India (RBI) taken to

    ease the liquidity crunch in the banking system?
    A Increased CRR (Cash Reserve Ratio) Correct Answer Incorrect Answer
    B Conducted a $10 billion USD/INR swap auction Correct Answer Incorrect Answer
    C Announced bond purchases worth ₹600 billion in three tranches Correct Answer Incorrect Answer
    D Reduced the repo rate by 1% Correct Answer Incorrect Answer
    E Introduced new ₹2000 banknotes Correct Answer Incorrect Answer

    Solution

    Explanation: The RBI introduced bond purchases and swap auctions to address liquidity shortages in the banking sector.

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