CUET Economics 2025 14 May Shift 1 PYQs

If the required reserve ratio in an economy is 12.5%, the initial cash deposits of ₹2000 will increase the money supply by ______.

Which of the following are correct about money measures?

(A) M1 = CU + DD

(B) M2 = M1 + Savings deposits with commercial banks

(C) M3 = M1 + Net time deposits of commercial banks

(D) M4 = M3 + Total deposits with Post Office savings organisations (excluding National Savings Certificates)

Choose the correct answer from the options given below:

Consider the following statements regarding the demand for money and choose the correct statements.

A. Speculative demand for money is inversely related to the rate of interest.

B. Demand for money balance is often referred to as transaction preference.

C. People desire to hold money broadly for speculative and transaction motive.

D. Transaction demand for money is inversely related to the real income of an economy.

Choose the correct answer from the options given below: