CUET Economics PYQs

Suppose, in a hypothetical economy, the cash reserve ratio is 20% and initial deposits are Rs.100. The value of money which a bank can use to give as a loan in the first round would be

The headline inflation rate is largely under control, although the inflation rate for some specific food items is elevated.

In the above statement, what is meant by control?

1. Within the range of the acceptable inflation rate.
2. Price rise of basic consumption item is not in control.
3. Price of items for daily consumption are growing in such a manner that they are manageable through implementing policy tools if need arises.
4. No price rise has been witnessed.

What is the process through which banks create money?