Question Details

Detailed explanation and options for the selected question.

If you withdraw Rs. 1,00,000 in cash from your Demand Deposit Account, what is the immediate effect on the aggregate money supply in India?

A. It decreases by Rs. 1,00,000
B. It increases by Rs. 1,00,000
C. It increases by more than Rs. 1,00,000
D. It remains unchanged

Explanation: