RBI can influence money supply by changing the Bank rate. An increase in Bank rate can be termed as : Option 1: Contractionary monetary policy Option 2: Expansionary monetary policy Option 3: Contractionary fiscal policy Option 4: Expansionary fiscal policy

The answer is 'Contractionary monetary policy'. View full solution:

CUET Economics - RBI can influence money supply by changing the Bank rate. An increase in Bank rate can be termed as : | PYQs + Solutions

CUET Economics

Macro

Easy

Contractionary monetary policy

Expansionary monetary policy

Contractionary fiscal policy

Expansionary fiscal policy

✅ Correct Option: 1

Related questions:

30 May Shift 1

Quantitative instruments of monetary policy focus on :

(A) Quantity of money across selected sectors of the economy.

(B) Overall supply of money in the economy.

(D) Inflationary and deflationary gaps in the economy.

Choose the correct answer from the options given below:

3 June Shift 1

Match List-I with List-II

List-I	List-II
(A) Bank Rate	(I) Securities are pledged in order to repurchase.
(B) Open Market Operations	(II) Minimum rate at which funds are provided for long term.
(C) Repo Rate	(III) Buying and selling of bonds issued by the government in open market.
(D) Reverse Repo Rate	(IV) Central bank borrows funds from commercial banks.

Choose the correct answer from the options given below:

2 June Shift 1

The Reserve Bank of India (RBI) __________ government securities in a bid to ________ the stock of money in the economy.