Policy tools to control money supply in Economy by the Reserve Bank of India :

(A) Repo-rate

(B) Assets

(C) Open market operations

(D) Bank rate

Choose the correct answer from the options given below : only

(A), (C), (D) Only

The correct answer is option (3) : (A), (C), (D) Only

The policy tools used by the Reserve Bank of India to control money supply in the economy are :

(A) Repo-rate : The repo rate is the rate at which the central bank (RBI) lends money to commercial banks. By changing the repo rate, the RBI can influence the cost of borrowing for banks, which, in turn, affects their lending and deposit rates. This, in turn, influences the money supply in the economy.

(C) Open market operations : Open market operations involve the buying and selling of government securities by the central bank. When the RBI sells government securities, it reduces the money supply in the economy, and when it buys government securities, it increases the money supply.

(D) Bank rate : The bank rate is the rate at which the central  bank lends money to commercial banks on a long-term basis. By changing the bank rate, the  RBI can influence the cost of long term borrowing for banks and, subsequently, their lending and deposit rates, impacting the money supply.

(B) Assets: This option is incorrect in the context of policy tools used by the RBI to control money supply. Assets refer to items of value owned by an individual or organization, and they are not a policy tool employed by central banks like the RBI.