UPSC 2012 › Indian Economy › Monetary Policy & Money Supply

1 question · 2012 · answers as per the UPSC key

Take test Free Study this topic: Money, Banking and Monetary Policy
All years of Monetary Policy & Money Supply · Full UPSC 2012 paper
UPSC 2012 · Q77 · Indian Economy › Monetary Policy & Money Supply · Save

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) 1 only
(b) 2 and 4 only
(c) 1 and 3
(d) 2, 3 and 4
Show answer
Answer: (c) 1 and 3