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CUET Economics 2023 PYQs11 June Shift 3. Free, no login required.

Macro

past year questions, CUET Economics 2023 11 June Shift 3

Money & Banking

past year questions, Macro, CUET Economics 2023 11 June Shift 3

Easy

A fall in the bank rate __________ the money supply.

Solution

✅ Correct Option: 2

Bank rate is the rate at which the central bank lends to commercial banks. A fall in bank rate makes borrowing cheaper for commercial banks, which in turn lend more to the public. This increases the credit creation capacity of banks, thereby increasing the money supply in the economy.

Related questions:

2025: 22 May Shift 1

Match List-I with List-II

List-IList-II
(A). M1(I). Currency held by the public and net demand deposits held by commercial banks
(B). M2(II). M3 + Total deposits with Post Office savings organisations
(C). M3(III). M1 + Net time deposits of commercial banks
(D). M4(IV). M1 + Savings deposits with Post Office savings banks

Choose the correct answer from the options given below:

2026: 13 May Shift 2

Exchange of commodities without the mediation of money is called as?

2025: 30 May Shift 1

Arrange the following steps involved in the process of credit creation by Commercial Banks.

(A) The commercial bank lends the excess reserves to the borrowers.

(B) The borrowers deposit the loaned money in the bank.

(C) The bank keeps a portion of the lent deposit money as reserve.

(D) The initial deposit is made in the commercial bank.

Choose the correct answer from the options given below:

2022: 10 Aug Shift 2

If the reserve ratio is 10% and the initial deposit with the commercial banks are Rs. 450 cr, the total money creation by the banking system will be :

2024: 16 May

Which of the following statements are true?

2025: 22 May Shift 2

Arrange the following statements related to money multiplier process in correct sequence.

(A) The bank has Rs 140 as deposits.

(B) The bank has Rs 80 to lend.

(C) A bank has a initial deposits of Rs 100 and needs to keep reserves as 20 per cent.

(D) The bank lends 50% of lending amount to Sonia.

Choose the correct answer from the options given below:

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