Preference

Question: Other things being equal, what will cause a reduction in the stock of money?

  1. a.
    a balance of payments surplus
  2. b.
    an increase in the public's demand for bank advances
  3. c.
    an increase in the public's desired of cash to bank deposits
  4. d.
    an increase in the public sector borrowing requirement
  5. e.
    None of these
Answer: c
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