Which among the following will lead to a reduction in the money supply of the economy ?

Arrange the sequence of events in the correct order relating to a quantitative tool used by the central bank during the times of inflation.

A. Hence the money supply in the economy decreases

B. As a result, loans taken by commercial banks become more expensive

C. The central bank increases the bank rate

D. This reduces the reserves held by the commercial banks

Choose the correct answer from the options given below:

Suppose there is a fresh deposit of Rs. 10,000 in banks and cash reserve ratio is 0.5. How much is total deposit creation?

1. 20,000
2. 50,000
3. 10,000
4. 5000

At a given cash reserve ratio of 50% with deposits of ₹ 1000, the amount which can be used to give loans by the bank.

A fall in the bank rate __________ the money supply.

The situation where people are willing to hold any amount of money at a very low interest rate is called?

Arrange the following measures of money supply (monetary aggregates) in increasing order of liquidity.

A. CU + DD where CU is currency held by the public and DD is net demand deposits of banks

B. CU + DD + Savings deposits with Post Office savings banks

C. CU + DD + Net time deposits of commercial banks

D. CU + DD + Net time deposits of commercial banks + Total deposits with Post Office savings organisations (excluding National Savings Certificates)

Choose the correct answer from the options given below: