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Question
When RBI wants to reduce liquidity in the banking system,
Options:
A .  It increases the CRR
B .  It increases the repo rate
C .  It increases the SLR
D .  It increases the reverse repo rate
Answer: Option A
:
A
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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