state gov Kerala PSC Degree (Common Preliminary Examination) Mock Test Series 2025 General Knowledge Economy Money and Banking
Consider the following events from an economic standpoint:
1. Increasing exports from India leads to higher inflow of foreign exchange.
2. A rise in interest rates in the USA attracts capital outflows from India.
3. Banks increasing their Marginal Cost of Funds-based Lending Rate (MCLR) makes borrowing more expensive.
How many of the above scenarios is/are likely to decrease the money supply in India?
1
Only one
2
Only two
3
All three
4
None