Arrange following statements relating to change in the bank rate in the correct sequence ?

(A) It reduces the reserve held by commercial banks.

(B) Loans taken by commercial banks become more expensive.

(C) Hence money supply decreases.

(D) RBI increases the bank rate.

Choose the correct answer from the options given below :

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

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

The correct sequence of statements relating to a change in the bank rate (interest rate set by the central bank) is as follows:

(D) RBI increases the bank rate.

(B) Loans taken by commercial banks become more expensive.

(A) It reduces the reserve held by commercial banks.

(C) Hence money supply decreases.