Which of the following measures would result in an increase in the money supply in the economy?
1. Purchase of govt securities from the public by the

Question

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

Accepted Answer

(C) 1 and 3 only

Answer

(A) 1 only

Answer

(B) 2 and 4 only

Answer

(D) 2, 3 and 4 only