The causal chain during inflation is: first, the central bank increases the bank rate (C); then loans to commercial banks become more expensive (B); this reduces the reserves held by commercial banks (D); and finally, money supply in the economy decreases (A). Correct order: C, B, D, A.
Arrange the sequence of events in the correct order relating to a quantitative tool used by the central bank during the times of inflation. A. Hence…
CUET UG 2023 — Economics Macro
2023mcqmedium
Arrange the sequence of events in the correct order relating to a quantitative tool used by the central bank during the times of inflation.
A. Hence the money supply in the economy decreases
B. As a result, loans taken by commercial banks become more expensive
C. The central bank increases the bank rate
D. This reduces the reserves held by the commercial banks
Choose the correct answer from the options given below:
Official previous-year question
Verified 13 Jul 2026.
Options
- A
B, C, A, D
- B
C, B, D, A
- C
A, B, C, D
- D
D, B, A, C
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