Which of the following action(s) by the Government would lead to contraction of money supply in the economy?<br>1. Purchase of Treasury Bills by the central bank from public<br>2. Sale of Treasury Bills by the central bank to public<br>3. Sale of foreign exchange by the central bank<br>4. Purchase of foreign exchange by the central bank<br>Select the <strong>correct</strong> answer using the code given below:

1. A. 1 and 4 only
2. B. 1 and 3 only
3. C. 2 and 3 only ✓
4. D. 2 only

Correct Answer: C. 2 and 3 only

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