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:

Question

Option 1: A, B, C, D

Option 2: A, C, D, B

Option 3: B, A, D, C

Option 4: C, B, D, A

AfterBoards · Accepted Answer

The answer is 'A, C, D, B'. View full solution:

List-I	List-II
(A) $M_1$	(I) $M_1$ + Net time deposits of commercial banks
(B) $M_3$	(II) Assets - Liabilities
(C) Net Worth	(III) 1/CRR
(D) Money Multiplier	(IV) Currency + Demand Deposit

CUET Economics 2026 21st May Shift 2 PYQs

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