CUET Economics 2025 2 June Shift 1 PYQs

Which of the following is/are a qualitative tool of credit control adopted by the central bank of a country?

(A) Repurchase agreement.

(B) Moral suasion.

(C) Open market operations.

(D) Margin requirements.

Choose the correct answer from the options given below:

An economy is facing inflationary pressures and the central bank of the country has been asked to control the situation. Arrange the action and result in sequential order.

(A) Credit has become costlier and people stop borrowing.

(B) Increase in Repo rate by the central bank.

(C) Reduction in the money supply and aggregate demand falls.

(D) Increase in the market lending rate by commercial banks.

Choose the correct answer from the options given below:

The headline inflation rate is largely under control, although the inflation rate for some specific food items is elevated.

In the above statement, what is meant by control?

1. Within the range of the acceptable inflation rate.
2. Price rise of basic consumption item is not in control.
3. Price of items for daily consumption are growing in such a manner that they are manageable through implementing policy tools if need arises.
4. No price rise has been witnessed.