Acme Ai
A
अ
Question No. 180Interactive Test Mode
00:00
+2-0.66

Q180. When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

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

Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2015 • Indian Economy

Correct Answer: Option (C) — Scheduled Commercial Banks may cut their lending rates

Concept & Option Breakdown

Standard Reference Verified

When the RBI cuts the Statutory Liquidity Ratio (SLR), commercial banks are required to park a lower proportion of their Net Demand and Time Liabilities (NDTL) in safe/liquid government securities. This releases additional investible funds into the banking system, increasing liquidity and prompting banks to reduce their lending rates to encourage credit disbursement.

Elimination Heuristic & Exam Approach

Extreme words like 'drastically' in options (a) and (d) are typical red flags in UPSC questions and are usually incorrect.

Reviewed by Avinash Sir & Acme AI Research Team

Practice Full-Length & Sectional Prelims Mocks on this Interface

50 simulated tests in the APT Prelims Test Series (₹1,493) or 1-on-1 Mentorship with Avinash Sir.

Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2015 (Q180)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (C) — Scheduled Commercial Banks may cut their lending rates

Related & Repeated Prelims PYQs (13)

Questions from other UPSC Prelims years testing the same or closely linked concept.

View Cluster in 3D Graph
2011 • Q36488% Match

The lowering of Bank Rate by the Reserve Bank of India leads to:

Indian Economy • Industry & InfrastructureSolve
2010 • Q19887% Match

When the Reserve Bank of India announces an increase of the Cash Reserve Rate, what does it mean?

Indian Economy • Banking & Financial SystemSolve
1998 • Q20984% Match

The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called:

Indian Economy • Banking & Financial SystemSolve
2020 • Q15584% Match

If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? 1. Cut and optimise the Statutory Liquidity Ratio 2. Increa

Indian Economy • Banking & Financial SystemSolve
2021 • Q21384% Match

The money multiplier in an economy increases with which one of the following?

Indian Economy • Banking & Financial SystemSolve
2013 • Q36183% Match

An increase in the Bank Rate generally indicates that the:

Indian Economy • Industry & InfrastructureSolve
2010 • Q36983% Match

Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government?

Indian Economy • Banking & Financial SystemSolve
2014 • Q18582% Match

In the context of the Indian economy, which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’? 1. To enable the Central Bank to c

Indian Economy • Indian Economic Planning & GrowthSolve
2014 • Q35781% Match

If the interest rate is decreased in an economy, it will:

Indian Economy • Industry & InfrastructureSolve
2013 • Q18781% Match

In the context of Indian economy, ‘Open Market Operations’ refers to:

Indian Economy • Indian Economic Planning & GrowthSolve
2012 • Q13281% Match

Which of the following measures would result in an increase in the money supply in the economy? 1. Purchase of government securities from the public by the Cent

Indian Economy • Indian Economic Planning & GrowthSolve
2022 • Q14580% Match

With reference to the Indian economy, consider the following statements: 1. If the inflation is too high, the Reserve Bank of India (RBI) is likely to buy gover

Indian Economy • Banking & Financial SystemSolve
2013 • Q19180% Match

Consider the following liquid assets: 1. Demand deposits with the banks 2. Time deposits with the banks 3. Savings deposits with the banks 4. Currency The corre

Indian Economy • Indian Economic Planning & GrowthSolve

More PYQs from Indian Economy (Indian Economic Planning & Growth)

Master the Indian Economy syllabus cluster by practicing these related previous year questions.

View All Indian Economy PYQs
2016 • Q77Indian Economic Planning & Growth

What is/are the purpose/purposes of ‘District Mineral Foundations’ in India? 1. Promoting mineral exploration activities in mineral-rich districts 2.

Indian EconomyPractice
2016 • Q178Indian Economic Planning & Growth

What is/are the purpose/purposes of the Marginal Cost of the Fund-Based Lending Rate (MCLR) announced by RBI? 1. These guidelines help improve the tra

Indian EconomyPractice
2015 • Q78Indian Economic Planning & Growth

With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct? 1. It is a Public

Indian EconomyPractice
2015 • Q179Indian Economic Planning & Growth

‘Pradhan Mantri Jan-Dhan Yojana’ has been launched for:

Indian EconomyPractice
2015 • Q181Indian Economic Planning & Growth

‘Basel III Accord’ or simply ‘Basel III’ often seen in the new, seeks to:

Indian EconomyPractice
2015 • Q182Indian Economic Planning & Growth

With reference to Indian economy, consider the following: 1. Bank rate 2. Open market operations 3. Public debt 4. Public Revenue Which of the above i

Indian EconomyPractice
2015 • Q266Indian Economic Planning & Growth

With reference to Indian economy, consider the following statements: 1. The rate of growth of Real Gross Domestic Product has steadily increased in th

Indian EconomyPractice
2015 • Q267Indian Economic Planning & Growth

There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit? 1. Re

Indian EconomyPractice

Frequently Asked Questions — UPSC Prelims 2015 Q180

What is the official answer for UPSC Prelims 2015 GS Paper I Question 180 (Indian Economy)?

The official UPSC answer key for this 2015 Indian Economy (Indian Economic Planning & Growth) question is Option (C): "Scheduled Commercial Banks may cut their lending rates". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2015 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Indian Economic Planning & Growth". You can explore all repeated questions from Indian Economic Planning & Growth in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Indian Economic Planning & Growth UPSC Prelims question using option elimination?

Extreme words like 'drastically' in options (a) and (d) are typical red flags in UPSC questions and are usually incorrect.

Beyond Previous Year Questions

Structured Prelims Practice & Mentorship

Pair previous year question analysis with full-length simulated mock tests and 1-on-1 faculty guidance.

APT 2027 • 50 Prelims Tests17% OFF

Acme Prelims Test Series (APT)

Built to eliminate 1/3rd negative marking losses and 50–50 option traps through structured simulation and NCERT-backed keys.

  • 50 High-Yield Tests: Subject Sectionals, Current Affairs, CSAT Paper II & Full-Length Simulators
  • 1/3rd Penalty & Trap Analytics: Identify whether marks are lost to over-attempting or conceptual gaps
  • Option-by-Option NCERT Keys: Detailed distractor analysis and elimination logic for every question
  • Custom PDF-to-Mock Generator: Convert your revision notes or current affairs PDFs into practice tests
Complete 50-Test Package
₹1,493₹1,799• Valid till Prelims 2027
1-on-1 Personal MentorshipCapped at 10 Seats

1-on-1 UPSC Mentorship with Avinash Sir

Weekly 1-on-1 strategy reviews, daily study accountability, and personalized MCQ attempt audits with an experienced UPSC mentor.

  • Weekly 1-on-1 Sessions: Direct mentorship with Avinash Sir (Former Plutus IAS Mentor, UPSC & UPPCS Mains Written)
  • APT 50-Test Series Included: Full Prelims GS1 & CSAT test series bundled at no additional cost
  • Mock Attempt & Elimination Audit: Question-by-question review to calibrate your risk and attempt accuracy
  • Prelims & Integrated Tracks: Available as dedicated Prelims mentorship or end-to-end Prelims + Mains guidance
Prelims & Integrated Tracks
17% OFF• Includes APT 50-Test Series