The Reserve Bank of India (RBI) __________ government securities in a bid to ________ the stock of money in the economy. Option 1: sells; decrease Option 2: purchases; decrease Option 3: sells; increase Option 4: purchases; not change

The answer is 'sells; decrease'. View full solution:

CUET Economics - The Reserve Bank of India (RBI) __________ government securities in a bid to ________ the stock of money in the economy. | PYQs + Solutions

CUET Economics 2025 2 June Shift 1

Macro

Easy

sells; decrease

purchases; decrease

sells; increase

purchases; not change

✅ Correct Option: 1

Related questions:

CUET Economics 2023 Slot 6

Arrange the sequence of events in the correct order relating to a quantitative tool used by the central bank during the times of inflation.

A. Hence the money supply in the economy decreases

B. As a result, loans taken by commercial banks become more expensive

C. The central bank increases the bank rate

D. This reduces the reserves held by the commercial banks

Choose the correct answer from the options given below:

27 May Shift 2

Which are the following statements are true:

(A) Open Market Operations refers to buying and selling of bonds issued by the Government in the open market.

(B) Currency notes and coins are called fiat money.

(D) M1 and M2 are known as narrow money.

Choose the correct answer from the options given below:

13 May Shift 2

Match List-I with List-II

Choose the correct answer from the options given below: