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| 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. | |