Which of the following measures would result in an increase in the money supply in the economy?\n1. Purchase of government securities from the public by the Central Bank\n2. Deposit of currency in commercial banks by the public\n3. Borrowing by the government from the Central Bank\n4. Sale of government securities to the public by the Central Bank\nSelect the correct answer using the code given below:

Correct Option: (C) 1 and 3 only

Purchase of government securities from the public by the Central Bank will lead to an increase in money supply. Borrowing by the government from the central bank will lead to an increased money supply as the borrowings made by the government would be spent upon development or social welfare expenses. Deposit of currency in commercial banks by the public and sale of government securities to the public by the central bank will reduce the money supply in the economy.