CUET Economics - 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 | PYQs + Solutions

CUET Economics 2025 29 May Shift 2

Macro

Easy

100

120

✅ Correct Option: 1

Related questions:

31 May Shift 1

Suppose there is a fresh deposit of Rs. 10,000 in banks and cash reserve ratio is 0.5. How much is total deposit creation?

20,000
50,000
10,000
5000

28 May Shift 1

When the interest rate is very high, newspapers and media channels are predicting that it may fall in future and hence anticipate capital gains from bond-holdings. Hence, people convert their money into bonds.

In the above statement, which motive of money is highlighted?

Transaction Motive
Speculative Motive
Demonetisation Motive
Precautionary Motive

3 June Shift 1

Mr. Kishore, an economics teacher, was explaining the concept of 'minimum percentage of total deposits to be kept by any commercial bank with the Central bank of the country, as per norms and statute prevailing in the country'.

From the following, choose the correct alternative which specifies towards the concept explained by him:

CUET Economics 2025 29 May Shift 2 PYQs

Keyboard Shortcuts