question_answer

As reported in various newspapers many banks have revised their interest rates on home loans, car loans and other such loans. Which of the following phenomenon prompted these banks to make such an upward revision in their interest rates?                                              [UBOI 2008]

[1] RBI has revised the CRR and other such rates upward, which has created a liquidity crunch in the market.

[2] Stock markets in the country are showing very high fluctuations as visible through their indexes. As a result banks have lost a huge amount of money in trading. Banks now want .to recover that money by increasing their interest rates.

[3] Banks are in need of a huge amount of money, as they have to give revised pay to all its employees.

 

A)  Only (1)                       

B)  Only (2)

C)  Only (3)                       

D)  All (1), (2) & (3)

E)  None of these