In open market operation if Central Bank is buying government securities, how this will impact the money supply in the market? Option 1: Decrease. Option 2: Remain constatnt. Option 3: May increase or decrease. Option 4: Increase.

The answer is 'Increase.'. View full solution:

CUET Economics - In open market operation if Central Bank is buying government securities, how this will impact the money supply in the market? | PYQs + Solutions

CUET Economics 2026 6th June Shift 1

Macro

Easy

Decrease.

Remain constatnt.

May increase or decrease.

Increase.

✅ Correct Option: 4