Consider the following statements regarding instruments of Monetary Policy:
1. The Central Bank can increase the money supply by increasing the bank rate
2. The Central Bank can increase the money supply by purchasing securities from the public
3. The Central Bank can decrease the money supply by increasing the cash reserve ratio
Which of the statements given above is/are correct?
1
2 only
2
2 and 3 only
3
1 and 3 only
4
1, 2 and 3