Question

Money supply in India may increase if, ______

1. Reserve Bank of India (RBI) injects more money in circulation.
2. The commercial banks expand their credit operation.
3. Tax rates are reduced by the Central Government.
4. Reserve Bank of India increases the Bank Rate.

Options

• 1, 2 and 3 are correct.

• 2, 3 and 4 are correct.

• 1, 3 and 4 are correct.

• 1, 2 and 4 are correct.

Answer 1

1, 2 and 3 are correct.