In which of the following conditions, does the supply of money fall?
A. When RBI purchases government bonds
B. When RBI sells government bonds
C. Both (A) and (B)
D. When RBI prints more note currencies
Answer:B
In which of the following conditions, does the supply of money fall?
A. When RBI purchases government bonds B. When RBI sells government bonds C. Both (A) and (B) D. When RBI prints more note currencies