A fall in Bank rate can increase the ____________.

Money supply

The correct answer is option (1) :Money supply

When the central bank lowers the bank rate, it becomes cheaper for commercial banks to borrow from the central bank. As a result, commercial banks are incentivized to borrow more, leading to an increase in their reserves. With higher reserves, commercial banks can increase lending to businesses and individuals, which in turn increases the money supply in the economy.