CUET Economics - Which among the following will lead to a reduction in the money supply of the economy ? | PYQs + Solutions

CUET Economics

Macro

Easy

Selling of a bond by RBI to private individuals or institutions

Buying of a bond by RBI from private individuals or institutions

Decrease in bank rate

Reduction in cash reserve ratio

✅ Correct Option: 1

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Identify which of the following measures taken by RBI will increase the money supply.

A. Increase in Cash Reserve Ratio

B. Decrease in Cash Reserve Ratio

C. Selling of a government bond

D. Buying of a government bond

E. Decrease in Bank Rate

Choose the correct answer from the options given below:

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