Economics · Monetary Policy
If the Reserve Bank of India (RBI) desires to decrease the money supply in the economy, which of the following measures should it take?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Lower the repo rate
- 2Increase the Cash Reserve Ratio (CRR)✓
- 3Purchase government securities from the open market
- 4Lower the bank rate
Correct answer
Increase the Cash Reserve Ratio (CRR)
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