A cut in Repo Rate would lead to __________ in Money Supply and a cut in Reverse Repo Rate would lead to __________ in deposits of commercial bank to RBI Option 1: increase; increase Option 2: decrease; decrease Option 3: decrease; increase Option 4: increase; decrease

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

CUET Economics - A cut in Repo Rate would lead to __________ in Money Supply and a cut in Reverse Repo Rate would lead to __________ in deposits of commercial bank to RBI | PYQs + Solutions

CUET Economics 2025 2 June Shift 1

Macro

Easy

increase; increase

decrease; decrease

decrease; increase

increase; decrease

✅ Correct Option: 4

Related questions:

26 May Shift 2

M3 is the most commonly used measure of money supply. It is also known as aggregate monetary resources. Which of the following is not a component of M3?

22 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Assets	(I) Create Credit
(B) Liabilities	(II) Firm Owes to others
(C) Central Bank	(III) Control Credit
(D) Commercial Banks	(IV) Firm can Claim from others

Choose the correct answer from the options given below:

28 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Currency + Demand Deposits + Savings deposits with Post Office savings banks	(I) M4
(B) Currency + Demand Deposits + Net time deposits of commercial banks + Total deposits with Post Office	(II) M2
(C) Currency + Demand Deposits	(III) M3
(D) Currency + Demand Deposits + Net time deposits of commercial banks	(IV) M1

Choose the correct answer from the options given below:

CUET Economics 2025 2 June Shift 1 PYQs

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