CUET Economics 2026 20th May Shift 1 PYQs

The transaction demand for money in an economy can be written in the following form as,

$\frac{1}{k}.M_t^d = T$, or $v.M_t^d = T$

in the above expression v refers to:

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

Arrange the following statements in chronological order with respect to open market operation.

(A) Bonds payments increases total reserves in the economy.

(B) RBI buys government bonds from the market.

(C) RBI sell bond if there is excess money supply.

(D) Higher reserves Increase money supply in the economy.

Choose the correct answer from the options given below: