An increase in the Bank Rate generally indicates that the

Answer

Central Bank is following a tight money policy

(a) Bank Rate is the rate at which the Central Bank lends to commercial banks. If it is increased, borrowing becomes costlier and market interest rates tend to rise, not fall. Verdict: Incorrect.
(b) A rise in Bank Rate does not mean the Central Bank has stopped lending; it only means loans are available at a higher rate. Verdict: Incorrect.
(c) An increase in Bank Rate is used to reduce credit expansion and curb liquidity, which is the opposite of easy money policy. Verdict: Incorrect.
(d) Raising the Bank Rate makes credit costlier, discourages borrowing, and contracts money supply. This is a tight/dear money policy. Verdict: Correct.