Directions (1 - 5): Rearrange the following six sentences (A). (B). (C), (D), (E) and (F) in the proper, sequence to form a meaningful paragraph; then answer the questions given below them.
(A) The Reserve Bank of India (RBI), which had last intervened in the foreign exchange market in June
2009, was seen buying dollars to stem the rupee’s runaway appreciation.
(B) The bank had for so long resisted a rate increase, but finally toed the line of other banks as its cost of funds has gone up.
(C) The local currency recently rose to a 25-month high against the dollar on sustained capital inflows.
(D) Some interesting things have happened in the Indian financial system in the past few weeks.
(E) The RBI also announced a 12.000 crore buy- back of government bonds from the market to infuse money into a liquidity-starved banking system.
(F) Finally, the State Bank of India, the nation's largest lender, has raised its minimum lending rate, or base rate, by 10 basis points. (One basis point is one-hundredth of a percentage point)
1. Which of the following would be the THIRD sentence?