1.

Which of the following measures would result in an increase in the money supply in the economy?1. Purchase of government securities fromthe public by the Central Bank2. Deposit of currency in commercial banks by the public3. Borrowing by the government fromthe Central Bank4. Sale of government securities to the public by the Central BankSelect 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
Answer» D. 2, 3 and 4


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