To identify the accurate statements, each must be individually assessed:
(A) Quantitative tools manage the money supply by adjusting the CRR.
The Cash Reserve Ratio (CRR) is a quantitative instrument employed by the central bank to regulate the money supply. Adjustments to the CRR impact the lending capacity of banks. Consequently, statement (A) is accurate.
(B) Open market operations consist of outright and upright transactions.
The correct terminology for open market operations is "outright" and "repo" transactions. Thus, statement (B) is inaccurate.
(C) A decrease in the bank rate can reduce the money supply.
Typically, a reduction in the bank rate leads to an expansion of the money supply, as it becomes more economical for commercial banks to obtain funds from the central bank and subsequently increase lending. Therefore, statement (C) is inaccurate.
(D) The sale of bonds by the RBI results in a diminished quantity of reserves.
When the RBI sells bonds, it withdraws money from the banking system, thereby reducing the available reserves. Hence, statement (D) is accurate.
(E) The RBI can influence the money supply by altering the interest rate at which it extends loans to commercial banks.
This refers to the repo rate. Modifications to this rate affect banks' borrowing behavior and, in turn, influence the money supply. Consequently, statement (E) is accurate.
The accurate statements are (A), (D), and (E). The definitive answer comprises only statements (A), (D), and (E).