In excess demand, money supply needs to be reduced. This requires increasing Bank rate (B) to make borrowing costlier, and increasing SLR (C) to reduce lending capacity of banks. CRR should also increase (not decrease). Hence (B) and (C) only.
In a situation of Excess Demand. Choose the correct option. (A) Cash reserve ratio should decrease (B) Bank rate should increase (C) Statutory…
CUET UG 2022 — Economics Macro
2022mcqmedium
In a situation of Excess Demand.
Choose the correct option.
(A) Cash reserve ratio should decrease
(B) Bank rate should increase
(C) Statutory Liquidity Ratio should increase
(D) Statutory Liquidity Ratio should decrease
Choose the correct answer from the options given below :
Official previous-year question
Verified 13 Jul 2026.
Options
- A
(A) and (B) only
- B
(B) and (C) only
- C
(C) and (A) only
- D
(D) and (B) only
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