Multiple choice

What does RBI do when it wants to reduce liquidity in the banking system?

  1. It increases the CRR.

  2. It decreases the SLR.

  3. It decreases the repo rate.

  4. It decreases the reverse repo rate.

  5. It maintains the same bank rate.

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Option (1) is correct.