Economics (AS & A Level) · May / June 2021 · Paper 32 · Question 25

Which change will allow an increase in an economy's money supply?

1. AAn outflow of currency for trade and capital purposes becomes an inflow.
2. BThe central bank instructs commercial banks to keep higher ratios of cash to deposits.
3. CThe government budget balance moves from a deficit to a surplus.
4. DThe government replaces borrowing from the banks with borrowing from the general public.

As printed in the paper