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CUET Economics 2026 PYQs12 May Shift 1. Free, no login required.

Macro

past year questions, CUET Economics 2026 12 May Shift 1

Money & Banking

past year questions, Macro, CUET Economics 2026 12 May Shift 1

Easy

Arrange the following measures of money supply in decreasing order of their liquidity.

(A) M4

(B) M2

(C) M1

(D) M3

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 3

Liquidity of money supply measures follows the order M1>M2>M3>M4M1 > M2 > M3 > M4. M1 (currency plus demand deposits) is the most liquid; M2 adds post office savings deposits; M3 adds time deposits; M4 adds total post office deposits and is least liquid. In decreasing order of liquidity: (C), (B), (D), (A).

Related questions:

2023: 29 May Shift 2

As a bankers' bank, what is the role played by RBI?

A. Custodian of cash reserves

B. Maintain Foreign Exchange Reserves

C. Currency Issue

D. Lender of last resort

E. Clearing house

Choose the correct answer from the options given below:

2026: 23 May Shift 1

Identify the liabilities of the commercial banks from the following:

2025: 14 May Shift 1

The bank rate and reserve money are the monetary tools of RBI to regulate the money flow with ...........

  1. Cooperative banks
  2. External banks
  3. Central bank
  4. Commercial banks

2022: 10 Aug Shift 2

Which of the following is not a function of the Central Bank ?

2025: 30 May Shift 1

Match List-I with List-II

List-IList-II
(A) Secondary Deposits(i) Initial deposits with commercial banks
(B) Primary Deposits(ii) The ratio of money held by the public in currency to that held at deposits in commercial banks.
(C) Currency Deposit ratio(iii) No intrinsic value
(D) Fiat money(iv) Demand deposits which come back to Commercial bank through lending process.

Choose the correct answer from the options given below:

2025: 30 May Shift 1

Quantitative instruments of monetary policy focus on :

(A) Quantity of money across selected sectors of the economy.

(B) Overall supply of money in the economy.

(C) Credit creation capacity of commercial banks.

(D) Inflationary and deflationary gaps in the economy.

Choose the correct answer from the options given below:

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