Economics · Monetary Policy
Consider the following statements regarding monetary tools in India: Statement I: RBI increases the reserve-deposit ratio to increase the money supply in the economy. Statement II: An increase in the Cash Reserve Ratio (CRR) decreases the money supply in the economy. Statement III: RBI purchases government securities from the general public to decrease the stock of high-powered money. Which of the statements given above is/are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Only Statement I
- 2Only Statement II✓
- 3Only Statement III
- 4Statements II and III
Correct answer
Only Statement II
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Monetary Policy MCQs →Want more practice questions on Monetary Policy?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Monetary Policy