How does Bank control Money Supply and Reserve Deposit Ratio in an Economy

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Reserve Deposit Ratio It is the Ratio of Reserves kept by bank to Total Deposits Reserve Deposit Ratio (RDR) Total Reserves of Bank Total Deposits of Bank Example Deposit Rs 100000 Loan Rs 80000 It means 20000 kept as Reserve by Bank Reserve Deposit Ratio Total Reserves of Bank Total Deposits of Bank RDR 80000 25% How does Central Bank Control the Value of Reserve Deposit Ratio By Changing Statutory Liquidity Ratio By Changing Cash Reserve Ratio By Changing Bank Rate It determines amount of Reserves kept with bank It determines amount of Reserves kept with RBI It determines Rate of Interest charged by RBI from Banks If Increased More funds to be kept in liquid form with banks Less loan can be given by bank If increased Bank will also increase Lending Rate Less loan will be taken by Public If Decreased Less funds in liquid form with banks More loan can be given by bank If Decreased Bank will also decrease Lending Rate More loan will be taken by Public