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Which of the following measures would result in an increase in the money supply in the economy?
1. Purchase of government securities from the public by the Central Bank.
2. Deposit of currency in commercial banks by the public.
3. Borrowing by the government from the Central Bank.
4. Sale of government securities to the public by the Central Bank.
Select the correct answer using the codes given below


A) Only 1

B) 2 and 4

C) 1 and 3

D) 2, 3 and 4

Correct Answer:
C) 1 and 3


Part of solved Currency Inflation questions and answers : General Knowledge >> Economy >> Currency Inflation




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