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UPSC Economics Business and Foreign Trade / व्यापार और विदेश व्यापार Question Bank Money Supply and Indian Financial System

  • question_answer
          If an exporter earns money and deposits that with RBI, what will be the ultimate impact on country's money supply?

    A) Money supply will increase

    B) Money supply will decrease

    C) Money supply will remain unaltered

    D) Money supply will depend upon the current exchange rate

    Correct Answer: A

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