MCQOPTIONS
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| 1. |
Which of the following measures would result in an increase in the money supply in the economy? 1. Purchase of government security from the public by the Central Bank2. Deposit of currency by commercial banks by the public3. Borrowing by the government from the Central Bank4. Sale of the government securities to the public by the Central Bank |
| A. | 1 only |
| B. | 2 and 4 only |
| C. | 1 and 3 |
| D. | 2, 3 and 4 |
| Answer» D. 2, 3 and 4 | |