The Monetary Policy Committee (MPC) determines the policy interest rate required to achieve the inflation target. In this context, which of the following quantitative tool may be recommended by the MPC to control deflation in the economy?
1. Increase in Cash Reserve Ratio (CRR)
2. Decrease in Bank rate
3. Decrease in Reverse Repo Rate
Select the correct answer using the code given below.
1
1 and 2 only
2
3 only
3
2 and 3 only
4
1, 2 and 3