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What is the effective method to control inflation in the economy?
Question

What is the effective method to control inflation in the economy?


A.

Cash Reserve Ratio


B.

Selective Control of Credit


C.

Bank  Rate Rate Policy


D.

To expand Money Supply

Correct option is A

Cash Reserve Ratio (CRR): By increasing the CRR, the central bank forces banks to keep a larger portion of their deposits in reserve, which limits the amount of money they can lend out, thereby reducing the money supply in the economy and helping to control inflation. 

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