AfterBoards Logo
Skip to main contentSkip to solution

CUET Economics 2025 PYQs2 June Shift 1. Free, no login required.

Macro

past year questions, CUET Economics 2025 2 June Shift 1

Money & Banking

past year questions, Macro, CUET Economics 2025 2 June Shift 1

Easy

Comprehension:

Read the passage carefully and answer the questions based on the passage:

RBI Monetary Policy

The Reserve Bank of India, in its monetary policy meet decided to keep the key policy rates unchanged after two emergency rate cuts amid the COVID-19 disruptions and its ensuing economic fall out. Consequently, the repo rate stands unchanged at 4% and the reverse repo rate at 3.35%. RBI noted that the economic activity had started to recover from the lows of April-May. Meanwhile, migrant labor is returning to work in urban areas, and factories and construction activities are coming back to life. This is also reflected in rising levels of energy consumption and population mobility. In cities, traffic intensity is rising rapidly; online commerce is booming; and people are getting back to offices. The mood of the nation has shifted from fear and despair to confidence and hope. Some of this optimism is being reflected in people’s expectations. In September 2020, round of the RBI’s survey, households expects inflation to decline modestly over the next three months, indicative of hope that supply chains are mending.

Which of the following is not a monetary measure adopted by Reserve Bank of India?

Solution

✅ Correct Option: 3

Option 1 -> CRR is a monetary policy tool where RBI mandates banks to maintain reserves.

Option 2 -> Bank Rate is the rate at which RBI lends to commercial banks, a key monetary tool.

Option 3 -> Public Expenditure is a fiscal policy tool controlled by the government, not RBI.

Option 4 -> Open Market Operations involve buying/selling government securities by RBI to control money supply.

Hence, Option 3: Change in Public Expenditure -> Public expenditure is a fiscal policy measure controlled by the government through its budget allocation and spending decisions. The Reserve Bank of India handles monetary policy (CRR, Bank Rate, OMO, Repo Rate, etc.) which controls money supply and credit in the economy, while fiscal policy including public expenditure is the domain of the Ministry of Finance and the government -> correct

More from this set:

Question 41

The Reserve Bank of India (RBI) __________ government securities in a bid to ________ the stock of money in the economy.

Question 42

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

Question 43

Why did Monetary Policy Committee keep its policy rate unchanged in its recent meet?

Question 45

Repo Rate is the rate at which.

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question

CUET Economics Past Year Questions (Topic-Wise)