CUET Economics 2026 23rd May Shift 1 PYQs

The currency issued by the Reserve Bank of India is called.

A. High powered money

B. Reserve money

C. Bank money

D. Monetary base

E. Fiscal base

Choose the correct answer from the options given below:

A cut in Repo Rate would lead to __________ in Money Supply and a cut in Reverse Repo Rate would lead to __________ in deposits of commercial bank to RBI

Arrange the following statements in the context of impact on money supply by using Open Market Operations (OMO) tool.

A. RBI buys a Government bond in the open market.

B. It leads to increase in money supply.

C. RBI Pays through cheque to the commercial banks.

D. Thus increases the credit creation capacity of commercial banks.

Choose the correct answer from the options given below: