The cash reserve ratio (CRR) of all banks was reduced by 100 basis points to 3.00 per cent, effective from the reporting fortnight beginning March 28, 2020. What was the intention behind this move?

To increase the money supply 

The correct answer is option 3: To increase the money supply

CRR is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank.

Reducing the CRR lowers the amount of money banks are required to hold in reserve, allowing them to lend more money and thereby increase the money supply in the economy. This move is typically aimed at stimulating economic activity and managing issues such as a slowdown in growth or low inflation.