Which one of the following is not used as a basis for credit creation? Option 1: Wealth held by public Option 2: High powered money Option 3: Monetary base Option 4: Reserve money

The answer is 'Wealth held by public'. View full solution:

CUET Economics - Which one of the following is not used as a basis for credit creation? | PYQs + Solutions

CUET Economics 2026 31st May Shift 1

Macro

Medium

Wealth held by public

High powered money

Monetary base

Reserve money

✅ Correct Option: 1

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Match List-I with List-II

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3 June Shift 1

Match List-I with List-II

List-I	List-II
(A) Bank Rate	(I) Securities are pledged in order to repurchase.
(B) Open Market Operations	(II) Minimum rate at which funds are provided for long term.
(C) Repo Rate	(III) Buying and selling of bonds issued by the government in open market.
(D) Reverse Repo Rate	(IV) Central bank borrows funds from commercial banks.

Choose the correct answer from the options given below:

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What are the short and long term tools of lending to commercial banks by the RBI?