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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
  • a)
    1 only
  • b)
    2 and 4 only
  • c)
    1 and 3
  • d)
    2, 3, and 4
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which of the following measures would result in an increase in the mon...
Central bank increases the money suppy by introducing more money in the economy.....when govt. borrows money from them the money with the govt and eventually public increases ...hence increase in money( money supply) in the market which
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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 Bank2. Deposit of currency in commercial banks by the public3. Borrowing by the government from the Central Bank4. Sale of government securities to the public by the Central BankSelect the correct answera)1 onlyb)2 and 4 onlyc)1 and 3d)2, 3, and 4Correct answer is option 'C'. Can you explain this answer?
Question Description
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 Bank2. Deposit of currency in commercial banks by the public3. Borrowing by the government from the Central Bank4. Sale of government securities to the public by the Central BankSelect the correct answera)1 onlyb)2 and 4 onlyc)1 and 3d)2, 3, and 4Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 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 Bank2. Deposit of currency in commercial banks by the public3. Borrowing by the government from the Central Bank4. Sale of government securities to the public by the Central BankSelect the correct answera)1 onlyb)2 and 4 onlyc)1 and 3d)2, 3, and 4Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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 Bank2. Deposit of currency in commercial banks by the public3. Borrowing by the government from the Central Bank4. Sale of government securities to the public by the Central BankSelect the correct answera)1 onlyb)2 and 4 onlyc)1 and 3d)2, 3, and 4Correct answer is option 'C'. Can you explain this answer?.
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