CUET Economics - Which among the following will lead to a reduction in the money supply of the economy ? | PYQs + Solutions

CUET Economics

Macro

Easy

Selling of a bond by RBI to private individuals or institutions

Buying of a bond by RBI from private individuals or institutions

Decrease in bank rate

Reduction in cash reserve ratio

✅ Correct Option: 1

Related questions:

26 May Shift 2

Suppose an initial cash deposit of INR 100 crores has been made in a commercial bank where a total credit of INR 500 crores has been created in the economy. The required reserve ratio in this country is.............

28 May Shift 2

The banks are required to keep some reserves in liquid form with the central bank. What are they called?

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?

Bank Rate.
Spread.
Reserve.
Deposits.

CUET Economics PYQs

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