CUET Economics - When the Reserve Bank of India buys government bonds from the market, how does that affect money supply in the economy? | PYQs + Solutions

CUET Economics 2025 13 May Shift 2

Macro

Easy

Increases Money Supply.

Decreases Money Supply.

Money Supply Remain Constant.

Increases the assets of government.

✅ Correct Option: 1

Related questions:

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:

27 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Cash Reserve Ratio	(I) Reserves + Loans
(B) Net Worth	(II) Deposits
(C) Assets	(III) Percentage of deposits which a bank must keep as cash reserves with the central bank
(D) Liabilities	(IV) Assets – Liabilities

Choose the correct answer from the options given below:

30 May Shift 1

Instead of outright sale of securities, the Central Bank may sell securities through an agreement which has a specification about the date and price at which it will be repurchased. This type of agreement is called . The rate at which money is withdrawn in this manner is called.

CUET Economics 2025 13 May Shift 2 PYQs

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