CUET Economics 2025 13 May Shift 1 PYQs

Which of the following is incorrect about the relaxations given by the government to reduce cash crunch immediately after demonetization?

1. Old currency notes were acceptable as legal tender at petrol pumps.
2. Old currency notes were acceptable as legal tender at government hospitals.
3. exchange of Rs 10000 old currency by the new currency per person and per day.
4. Old currency notes were acceptable as legal tender for payment of government dues, like taxes, power bills, etc.

Arrange the following statements in chronological order with respect to open market operation.

(A) Bonds payments increases total reserves in the economy.

(B) RBI buys government bonds from the market.

(C) RBI sell bond if there is excess money supply.

(D) Higher reserves Increase money supply in the economy.

Choose the correct answer from the options given below:

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.............