What are the short and long term tools of lending to commercial banks by the RBI? Option 1: Short period- Cash Reserve Ratio, Long Period- Bank Rate Option 2: Short period- Open market operations, Long Period- Reverse repo rate Option 3: Short period- Repo rate, Long Period- Bank Rate Option 4: Short period- Bank rate, Long Period- Reverse repo rate

The answer is 'Short period- Repo rate, Long Period- Bank Rate'. View full solution:

CUET Economics - What are the short and long term tools of lending to commercial banks by the RBI? | PYQs + Solutions

CUET Economics 2026 11th May Shift 1

Macro

Easy

Short period- Cash Reserve Ratio, Long Period- Bank Rate

Short period- Open market operations, Long Period- Reverse repo rate

Short period- Repo rate, Long Period- Bank Rate

Short period- Bank rate, Long Period- Reverse repo rate

✅ Correct Option: 3

Related questions:

28 May Shift 2

When Cash Reserve Ratio is 20% then with the deposit of Rs 1000, Money creation will be Rs 5000, Money multiplier is :

22 May Shift 1

Match List-I with List-II

List-I	List-II
(A). M1	(I). Currency held by the public and net demand deposits held by commercial banks
(B). M2	(II). M3 + Total deposits with Post Office savings organisations
(C). M3	(III). M1 + Net time deposits of commercial banks
(D). M4	(IV). M1 + Savings deposits with Post Office savings banks

Choose the correct answer from the options given below:

CUET Economics 2024 Slot 1

Match List-I with List-II :