Which of the following will cause no change in the UK money supply?
A) The government finances its PSNCR by selling bonds and bills to the general public and non- bank private sector.
B) There is a fixed exchange rate where the demand for sterling is greater than the supply.
C) The government decides to increase the proportion of the national debt financed by bonds rather than by bills.
D) The government imposes a statutory liquidity ratio on banks higher than their current ratio.
Correct Answer:
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