CUET Economics - The banks are required to keep some reserves in liquid form with the central bank. What are they called? | PYQs + Solutions

CUET Economics 2025 28 May Shift 2

Macro

Easy

Cash Reserve Ratio.

Statutory Liquidity Ratio.

Bank Rate.

Reverse repo.

✅ Correct Option: 1

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Central Bank is a very important institution in a modern economy. Almost every country has one central bank. India got its central bank in ......

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List-I	List-II
(A) $M_1$	(I) $M_1$ + Net time deposits of commercial banks
(B) $M_3$	(II) Assets - Liabilities
(C) Net Worth	(III) 1/CRR
(D) Money Multiplier	(IV) Currency + Demand Deposit

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Match List-I with List-II

List-I	List-II
(A) Bank Rate	(I) Securities are pledged in order to repurchase.
(B) Open Market Operations	(II) Minimum rate at which funds are provided for long term.
(C) Repo Rate	(III) Buying and selling of bonds issued by the government in open market.
(D) Reverse Repo Rate	(IV) Central bank borrows funds from commercial banks.

Choose the correct answer from the options given below:

CUET Economics 2025 28 May Shift 2 PYQs