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CUET Economics 2022 PYQs30 Aug Shift 2. Free, no login required.

Macro

past year questions, CUET Economics 2022 30 Aug Shift 2

Money & Banking

past year questions, Macro, CUET Economics 2022 30 Aug Shift 2

Medium

In a situation of Excess Demand.

Choose the correct option.

(A) Cash reserve ratio should decrease

(B) Bank rate should increase

(C) Statutory Liquidity Ratio should increase

(D) Statutory Liquidity Ratio should decrease

Choose the correct answer from the options given below :

Solution

✅ Correct Option: 2

In excess demand, money supply needs to be reduced. This requires increasing Bank rate (B) to make borrowing costlier, and increasing SLR (C) to reduce lending capacity of banks. CRR should also increase (not decrease). Hence (B) and (C) only.

Related questions:

2025: 29 May Shift 1

What happens to money supply if the RBI increases the cash reserve ratio?

2022: 16 July Shift 2

Identify the correct statements from the following:

A. Currency is issued by the nation's Central Bank

B. To address the budget deficit, Central Bank sends money to the government

C. The economy's foreign exchange reserves are preserved by Central Bank

D. Central Bank does not control money supply and credit through monetary policy

E. Central Bank gives loans to the commercial Banks for short term

Choose the correct answer from the options given below :

2025: 3 June Shift 2

The interest rate paid by the commercial banks to depositors is lower than the rate charged from the borrowers. This difference between these two types of interest rates, called?

  1. Bank Rate.
  2. Spread.
  3. Reserve.
  4. Deposits.

2025: 27 May Shift 2

Match List-I with List-II

List-IList-II
(A) Cash Reserve Ratio(I) Reserves + Loans
(B) Net Worth(II) Deposits
(C) Assets(III) Percentage of deposits which a bank must keep as cash reserves with the central bank
(D) Liabilities(IV) Assets – Liabilities

Choose the correct answer from the options given below:

2022: 30 Aug Shift 2

In India coins are issued by _______.

2026: 13 May Shift 1

Which of the following are the quantitative tools opted by Central bank to control money supply.

(A) Cash reserve Ratio.

(B) Moral Suasion.

(C) Bank Rate.

(D) Margin requirement.

Choose the correct answer from the options given below:

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