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:
A1 only
B2 and 4 only
C1 and 3
D2, 3 and 4
Answer & Solution
Correct answer: C. 1 and 3
UPSC CSE Prelims 2012 (GS-I, Set A), Q.77. Answer key: C (coaching consensus; UPSC did not publish an official 2012 AK separately on upsc.gov.in).
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