Concept:The central bank's bank rate is the interest rate at which commercial banks borrow money from it.
Explanation:When the central bank raises the bank rate, borrowing from the central bank becomes expensive for commercial banks.
Consequently, banks increase the interest rates they charge their customers.
Higher interest charges discourage customers from taking loans.
As fewer loans are given, less new money enters circulation in the economy.
Therefore, the overall supply of money tends to decrease.
Answer:C. the supply of money may be reduced.