When RBI wants to reduce liquidity in the banking system, it increases the .

CRR

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repo rate

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SLR

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reverse repo rate

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Solution

The correct option is A CRR
When RBI wants to reduce liquidity in the banking system, it increases the CRR as it reduces the money supply in the economy.

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Similar questions

When RBI wants to reduce liquidity in the banking system,

To reduce the liquidity in the market, RBI can perform which of the following operations?

i. Increase policy rate
ii. Increase cash reserve requirements
iii. Increase the statutory liquidity ratio

20

30

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