UPSC 2020EconomyModerate

If you withdraw ₹ 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be

a
to reduce it by ₹ 1,00,000
b
to increase it by ₹ 1,00,000
c
to increase it by more than ₹ 1,00,000
d
to leave it unchanged
Money and BankingMoney Supply and AggregatesDemand Deposit Accountaggregate money supplycash withdrawalM1currency with publicdemand deposits with banks

WANT TO PRACTICE LIKE THE REAL EXAM?

Don't just read questions. Take a full timed test with negative marking and detailed analytics to see where you stand.

Start Economy Test Now