Which of the following action by RBI leads to an increase in the supply of money in the economy: Option 1: Increase in bank rate Option 2: Decrease in bank rate Option 3: Increase in statutory liquid ratio. Option 4: Increase in repo rate

The answer is 'Decrease in bank rate'. View full solution:

CUET Economics - Which of the following action by RBI leads to an increase in the supply of money in the economy: | PYQs + Solutions

CUET Economics 2026 12th May Shift 1

Macro

Easy

Increase in bank rate

Decrease in bank rate

Increase in statutory liquid ratio.

Increase in repo rate

✅ Correct Option: 2

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C. Maintains the deposits of the public.

D. Regulates money supply by controlling the stock of high-powered money.

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