Solved UPSC CDS/OTA Question
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Q · RBI and Its PoliciesMedium · 45s
Which of the following monetary tools can the RBI use to reduce liquidity in the banking system? 1. Increase in CRR 2. Increase in SLR 3. Selling government securities
TopicRBI and Its Policies
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
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All listed measures reduce liquidity by restricting the money available with banks.
Final Answer: Option D — 1, 2 and 3