Subject Test
Note: -
You are attempting question 10 out of 1.
What will be the money supply, if the central bank purchases a government bond from an
individual who deposits all the money that has been received from the sale in the bank?
a) Rise by an amount that depends on the banks reserve ratio
b) Fall by exactly the amount of the deposit as long as the bank does not change its
reserve ratio
c) Rise by less than the amount of the deposit
d) Be unchanged
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