Arrange the following as steps taken by Central Bank to control the problem of inflation in India through its monetary policy.

A. Commercial Banks will increase their lending rate

B. Borrowing requirements will fall

C. Increase in repurchase agreement rate

D. Reduction of demand for goods and services at macro level

E. Income generation will slow down

Choose the correct answer from the options given below :

C, A, B, E, D

The correct answer is option (4) : C, A, B, E, D

Here's the reasoning for the arrangement :

1. C. Increase in repurchase agreement rate : This is a measure to make borrowing more expensive,reducing excess money in the economy.

2. A. Commercial Banks will increase their lending rate : As the Central Bank increases the repurchase agreement rate, commercial banks respond by raising their lending rates.

3. B. Borrowing requirements will fall : Higher lending rates lead to reduced borrowing, as borrowing becomes more expensive.

4. E. Income generation will slow down : Reduced borrowing and increased lending rates can lead to a slowdown in economic activities and income generation.

5. D. Reduction of demand for goods and services at the macro level : With slowed income generation and increased borrowing costs, the overall demand for goods and services tends to decrease.