To discourage the lending by commercial bank which of the following tool can be used by Central Bank? Option 1: Decrease Bank rate. Option 2: Increase Margin requirement. Option 3: Buy Government securities. Option 4: Decrease Statutory Liquidity Ratio.

The answer is 'Increase Margin requirement.'. View full solution:

CUET Economics - To discourage the lending by commercial bank which of the following tool can be used by Central Bank? | PYQs + Solutions

CUET Economics 2026 6th June Shift 1

Macro

Easy

Decrease Bank rate.

Increase Margin requirement.

Buy Government securities.

Decrease Statutory Liquidity Ratio.

✅ Correct Option: 2