With reference to Economic Survey 2022-23, consider the following statements regarding Liquidity:
1. Surplus liquidity conditions that prevailed post-Covid-19 in response to the Reserve Bank’s conventional and unconventional monetary measures moderated during FY23
2. Hike in the Cash Reserve Ratio results in the withdrawal of primary liquidity from the banking system.
Which of the statements given above is/are correct?
1
1 only
2
2 only
3
Both 1 and 2
4
Neither 1 nor 2