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Identify which of the following measures taken by RBI will increase the money supply.
A. Increase in Cash Reserve Ratio
B. Decrease in Cash Reserve Ratio
C. Selling of a government bond
D. Buying of government bond
E. Decrease in Bank Rate
Choose the correct answer from the options given below:
  • a)
    A and C only
  • b)
    B and D only
  • c)
    A, C and E only
  • d)
    B, D and E only
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Identify which of the following measures taken by RBI will increase th...
The supply of money means the total stock of all the forms of money (paper money, coins and demand deposits of banks) which are held by the public at any particular points of time.
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Identify which of the following measures taken by RBI will increase the money supply.A. Increase in Cash Reserve RatioB. Decrease in Cash Reserve RatioC. Selling of a government bondD. Buying of government bondE. Decrease in Bank RateChoose the correct answer from the options given below:a)A and C onlyb)B and D onlyc)A, C and E onlyd)B, D and E onlyCorrect answer is option 'D'. Can you explain this answer?
Question Description
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