CUET Economics - What was the negative impact of demonetization? | PYQs + Solutions

CUET Economics 2025 16 May Shift 1

Macro

Medium

Banks have more resources at their disposal which can be used to provide more loans at higher rate of interest.

The savings of an individual were channelised into the formal financial system.

Shifted transactions out of the cash economy into the formal payment system.

It improved tax compliance.

✅ Correct Option: 1

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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.

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

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CUET Economics 2025 16 May Shift 1 PYQs

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