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

CUET Economics 2023 1 June Shift 1

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:

28 May Shift 1

Which of the following statements is correct with reference to the Cash Reserve Ratio (CRR)?

A. The RBI decides a certain percentage of deposits which every bank must keep as reserves with the central bank

B. To ensure that no bank is 'over lending'

C. This is a legal requirement and is binding on the banks

D. Cash Reserve Ratio and Statutory Liquidity Ratio are the same concept.

Choose the correct answer from the options given below:

13 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Cash Reserve Ratio (CRR)	(I) Central Bank of the Country
(B) Statutory Liquidity Ratio (SLR).	(II) The interest rate at which the money lent by Central Bank
(C) Lender of last resort.	(III) Percentage of deposits which must kept as cash reserves with the Central bank.
(D) Repo Rate	(IV) Reserves in liquid form in the short term

Choose the correct answer from the options given below:

13 May Shift 2

When the Reserve Bank of India buys government bonds from the market, how does that affect money supply in the economy?

CUET Economics 2023 1 June Shift 1 PYQs