CUET Economics 2025 3 June Shift 2 PYQs

Among the following what are the functions of money?

(A). Medium of exchange.

(B). Unit of account.

(C). Unit of purchasing power.

(D). Store of value.

Choose the correct answer from the options given below:

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

"In India every currency note bears on its face a promise from the Governor of the Reserve Bank of India(RBI) that if someone produces the note to RBI, or any other commercial bank, the RBI will be responsible for giving the person purchasing power equal to the value printed on the note. The same is also true of coins."

These currency notes and coins are also known by which of the following type of money.