UPSC 2011 › Indian Economy › Monetary Policy & Money Supply

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UPSC 2011 · Q88 · Indian Economy › Monetary Policy & Money Supply · Save

The lowering of Bank Rate by the Reserve Bank of India leads to

(a) More liquidity in the market
(b) Less liquidity in the market
(c) No change in the liquidity in the market
(d) Mobilization of more deposits by commercial banks
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Answer: (b) Less liquidity in the market