After a 125-basis-point RBI repo-rate reduction over the last year, banks had demanded lower interest rates on small saving schemes. The government yesterday announced such a reduction to bring them on par with fixed-deposit rates. Which statement can be inferred?
Whenever RBI cuts repo, small-saving interest rates are also cut.
Small-saving rates are always on par with fixed-deposit rates.
Government sometimes considers banks’ demands before reducing small-saving rates.
Small-saving rate reductions occur only after an RBI repo-rate cut.
Correct answer: (C) Government sometimes considers banks’ demands before reducing small-saving rates.
Explanation
The passage supplies one instance in which banks made a demand and the government later made the requested reduction. This supports the qualified statement “sometimes”, C. It does not establish a universal rule about every repo cut, perpetual rate equality, or a necessary precondition for all future small-saving reductions.
More Verbal Aptitude: Reading Comprehension and Narrative Sequencing questions
GATE 2019 AE Q8– Hindustani music terminology has changed over centuries. Medieval dhrupad styles were…
GATE 2019 AE Q10– “I read somewhere that in ancient times the prestige of a kingdom depended upon the number…
GATE 2019 BT Q6– After a 125-basis-point RBI repo-rate reduction over the last year, banks had demanded…
GATE 2019 BT Q8– Hindustani music terminology has changed over centuries. Medieval dhrupad styles were…
GATE 2019 BT Q10– “I read somewhere that in ancient times the prestige of a kingdom depended upon the number…
GATE 2019 CY Q8– Congo was named by Europeans. Its dictator Mobuto later renamed the country and river…