Reverse repo rate is a monetary instrument used by the Central Bank to control credit. If the Central Bank increase the reverse repo rate, it will lead to ________.
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Shift 02/06/2023 3:30 PM - 6:30 PM
A
Less deposits with Central Bank and decrease the money supply
B
More deposits with Central Bank and increase the money supply
C
Less deposits with Central Bank and increase the money supply
D
More deposits with Central Bank and decrease the money supply
Correct Answer
More deposits with Central Bank and decrease the money supply
Detailed Explanation
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