Which of the following are tools to control money supply ?

(A) Repo Rate

(B) Bank Rate

(C) CRR

(D) Velocity of circulation of money

(E) Government Borrowing

Choose the correct answer from the options given below :

(A), (B) and (C) Only

The correct answer is option (4) : (A), (B) and (C) Only

The tools to control money supply include

(A) Repo Rate  : This is the rate at which the central bank lends money to commercial banks.

(B) Bank Rate  : It is the rate at which the central bank provides loans and advances to commercial banks.

(C) CRR (Cash Reserve Ratio )  : It is the percentage of deposits that banks are required to keep with the central bank.

(D) Velocity of circulation of money: This refers to the rate at which money changes hands in the economy. It is not a tool by the central bank to regulate money supply.

(E) Government Borrowing: While government borrowing can indirectly affect money supply by competing for funds in the financial market, it is not a tool controlled by the central bank.