Question

6. One of the measures adopted to control inflation in 1990-91 was. a) Lowering of CRR and SLR

b) Lowering of bank rate

c) Raising CRR and SLR

d) Restricting imports of essential commodities​

Answer 1

Answer:

Option a) Lovering of CRR and SLR

Answer 2

The correct option is b) Lowering of CRR and SLR.

One of the measures adopted to control inflation in 1990-91 was:-

b) Lowering of CRR and SLR.

• According to the Narasimham Committee Report, 1991, there was a recommendation to lower the CRR and the SLR.
• CRR is called the cash reserve ratio and SRR is called the statutory liquidity ratio.
• In mid-1991, SLR and CRR were at extremely high rates during the mid-1991.

• As per the recommendation, it was recommended to reduce the SLR from 38.5% to 25% within a period of 3 years.

• CRR was also recommended to cut down to 10% from 25% within 4 years time period.