Concept:Repo rate is the interest rate at which the central bank lends money to commercial banks. An increase in this rate makes borrowing more expensive for banks.Explanation:When the central bank raises the repo rate, commercial banks face higher costs to borrow funds. This discourages them from taking loans from the central bank. Consequently, the amount of money available with banks (liquidity) decreases. Banks also reduce their lending to customers, further reducing liquidity in the economy. An increase in repo rate does not increase or leave liquidity unchanged. It is a monetary policy tool, not related to government expenditure or taxes. Other options are therefore incorrect.Answer:A. Decrease in liquidity with commercial banks