CUET Economics - If the central bank purchases the government securities from the commercial banks, it is likely to | PYQs + Solutions

CUET Economics 2025 21 May Shift 1

Macro

Easy

Increase the money supply in the economy.

Reduce the money supply in the economy.

Decrease the demand of people.

Leaves the money supply in the economy unaffected.

✅ Correct Option: 1

Related questions:

28 May Shift 1

Which of the following statements is correct with reference to the Cash Reserve Ratio (CRR)?

A. The RBI decides a certain percentage of deposits which every bank must keep as reserves with the central bank

B. To ensure that no bank is 'over lending'

C. This is a legal requirement and is binding on the banks

D. Cash Reserve Ratio and Statutory Liquidity Ratio are the same concept.

Choose the correct answer from the options given below:

(A), (B) and (D) only
(A), (B) and (C) only
(A), (B), (C) and (D)
(B), (C) and (D) only

14 May Shift 1

Reserve Bank of India (RBI) is also known as by which other name.

26 May Shift 2

M3 is the most commonly used measure of money supply. It is also known as aggregate monetary resources. Which of the following is not a component of M3?

CUET Economics 2025 21 May Shift 1 PYQs

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