CUET Economics PYQs

Match List-I with List-II

Choose the correct answer from the options given below:

1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
2. (A) - (IV), (B) - (I), (C) - (II), (D) - (III)
3. (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

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:

If the required reserve ratio in an economy is 12.5%, the initial cash deposits of ₹2000 will increase the money supply by ______.