Which of the following measure of monetary policy can be used to reduce the excess money supply from the economy? Option 1: By reducing the bank rate. Option 2: By buying government securities through open market operation(OMO). Option 3: By increasing cash reserve ratio(CRR). Option 4: By reducing statutory liquidity ratio(SLR).

The answer is 'By increasing cash reserve ratio(CRR).'. View full solution:

CUET Economics - Which of the following measure of monetary policy can be used to reduce the excess money supply from the economy? | PYQs + Solutions

CUET Economics 2026 31st May Shift 1

Macro

Medium

By reducing the bank rate.

By buying government securities through open market operation(OMO).

By increasing cash reserve ratio(CRR).

By reducing statutory liquidity ratio(SLR).

✅ Correct Option: 3