CUET Economics 2025 21 May Shift 1 PYQs

Which of the following statements is correct about commercial banks ?

A. Considered as Money Creating system of the Indian Economy

B. They accept deposits from the public at a lower interest rate and lend out part of these funds at a higher interest rate

C. The difference between the interest rate paid to depositors and charged for lending is called "Spread".

D. Commercial banks in isolation control the money supply in India.

Choose the correct answer from the options given below:

1. (A), (B), (C) and D
2. (A), (B) and (D) only
3. (A), (B) and (C) only
4. (A) and (D) only

Suppose an initial cash deposit of INR 100 crores has been made in a commercial bank where a total credit of INR 500 crores has been created in the economy. The required reserve ratio in this country is.............

Consider the statements about Open Market Operations (OMO):

(A) OMO is a tool by which the Reserve Bank of India(RBI) controls money supply.

(B) OMO is an example of Qualitative Control.

(C) Selling bonds through RBI reduces the money supply.

(D) Outright OMOs are permanent in nature.

Choose the correct answer from the options given below:

1. (A), (B), (C), (D)
2. Only (A), (B), (C)
3. Only (A), (C), (D)
4. Only (A), (D)