1.

Whether or not the following measures taken by RBI will increase the money supply ? (i) Increase in Repo rate (ii) Decrease in Cash Reserve Ratio (CRR) (iii) Purchase of securities in the open market (iv) Increase in Margin Rqequirement.

Answer» Measure (ii) and (iii) will increase the money supply whereas (i) and (iv) will decrease the money supply.


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