Question:

Based on the following diagram answer the question:
Alternative Text
To deal with the gap E'F, the central Bank will

Updated On: Apr 2, 2026
  • Decrease the Bank Rate
  • Decrease the cash reserve ratio
  • Decrease the Repo rate
  • Sells securities in the open market
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The Correct Option is D

Solution and Explanation

The correct option is (D): Sells securities in the open market
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