CUET Economics 2025 30 May Shift 1 PYQs

Which of the following statements is correct about commercial banks ?

A. Considered as Money Creating system of the Indian Economy

B. They accept deposits from the public at a lower interest rate and lend out part of these funds at a higher interest rate

C. The difference between the interest rate paid to depositors and charged for lending is called "Spread".

D. Commercial banks in isolation control the money supply in India.

Choose the correct answer from the options given below:

1. (A), (B), (C) and D
2. (A), (B) and (D) only
3. (A), (B) and (C) only
4. (A) and (D) only

If the market rate of interest is already low enough so that everybody expects it to rise in future, causing capital losses, nobody will wish to hold bonds. This situation is called.............

1. Jevons Paradox
2. Liquidity trap
3. Paradox of thrift
4. Double coincidence of wants

Economic exchanges without the mediation of money are referred to as ...........