WBCS.LIVE practice question

Plan finance creates increase of money supply if there is:

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Increase in taxes
  2. Increase in loan from the Reserve Bank of India
  3. Increase in loan from commercial banks
  4. Increase in loan from general public

Correct answer and explanation

Correct answer: Increase in taxes