CUET Economics - What is the process through which banks create money? | PYQs + Solutions

CUET Economics 2025 29 May Shift 1

Macro

Medium

Fractional reserve banking.

Credit creation.

Monetary policy.

Reserve Management.

✅ Correct Option: 2

Related questions:

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If the M1 in the economy is Rs 375 crores, net time deposits of commercial banks is Rs 250 crores and total deposits with post office savings organizations is Rs50 crores, then what will be M4?

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Instead of outright sale of securities, the Central Bank may sell securities through an agreement which has a specification about the date and price at which it will be repurchased. This type of agreement is called . The rate at which money is withdrawn in this manner is called.

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The Central Bank is a very important institution in the modern economy. What are the main characteristics of the Reserve Bank of India?

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Choose the correct answer from the options given below:

CUET Economics 2025 29 May Shift 1 PYQs

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