The correct answer is D. 1, 2 and 3.
Cash Reserve Ratio (CRR) is the minimum amount of money that banks are required to keep with the Reserve Bank of India (RBI) in cash. The CRR is set by the RBI and is currently at 4%.
Statutory Liquidity Ratio (SLR) is the minimum amount of liquid assets that banks are required to hold against their demand and time liabilities. The SLR is also set by the RBI and is currently at 18%.
Bank Rate is the rate at which the RBI lends money to commercial banks. The bank rate is used by the RBI to control the money supply in the economy.
Foreign Exchange Rate is the rate at which one currency is exchanged for another. The foreign exchange rate is determined by supply and demand in the foreign exchange market.
The RBI uses these techniques of monetary control to influence the money supply in the economy. The RBI can increase or decrease the CRR, SLR, and bank rate to control the money supply. The RBI can also intervene in the foreign exchange market to influence the foreign exchange rate.
The RBI uses monetary policy to achieve its objectives of price stability, economic growth, and financial stability.