In order to reduce credit in the country, RBI may ________________.Sell securities in the marketBuy securities in the marketReduce cash reserve ratioReduce Repo Rate (2024)

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A

Buy securities in the open market

B

Reduce cash reserve ratio

C

Reduce Repo Rate

See Also
Reserve Bank of India

D

Sell securities in the open market

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Solution

Verified by Toppr

If RBI sells securities to public then commercial bank will buy those using its reserves then commercial banks don't have enough fund to lend money to general public so it reduces the credit in the country.

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In order to reduce credit in the country, RBI may ________________.Sell securities in the marketBuy securities in the marketReduce cash reserve ratioReduce Repo Rate (2024)
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