An economy is facing inflationary pressures and the central bank of the country has been asked to control the situation. Arrange the action and result in sequential order.

(A) Credit has become costlier and people stop borrowing.
(B) Increase in Repo rate by the central bank.
(C) Reduction in the money supply and aggregate demand falls.
(D) Increase in the market lending rate by commercial banks.

Choose the correct answer from the options given below:

(B), (D), (A), (C)

The correct answer is Option (4) → (B), (D), (A), (C)

(B) The central bank increases the Repo rate to control inflation — this is the first action.
(D) As a result, commercial banks increase their lending rates, making loans more expensive.
(A) Because of higher interest rates, people stop borrowing and reduce credit demand.
(C) This leads to a reduction in the money supply, lowering aggregate demand and helping control inflation.