CUET Economics: MacroMoney & Banking. Free, no login required.

Q1:

2025: 13 May Shift 1

Money & Banking

Hard

Arrange the following conditions from most to least liquid form:

(A) Currency + Demand Deposit+Savings deposits with Post Office savings banks.

(B) Currency + Demand Deposit + Net time deposits of commercial banks+ Total deposits with Post Office savings organisations.

(C) Currency + Demand Deposit.

(D) Currency + Demand Deposit + Net time deposits of commercial banks.

Choose the correct answer from the options given below:

Answer options
Option 2
Correct Answer
Explanation for 2025: 13 May Shift 1 ECO question 1

Q2:

2025: 13 May Shift 1

Money & Banking

Medium

Match List-I with List-II

List-IList-II
(A) Cash Reserve Ratio (CRR)(I) Central Bank of the Country
(B) Statutory Liquidity Ratio (SLR).(II) The interest rate at which the money lent by Central Bank
(C) Lender of last resort.(III) Percentage of deposits which must kept as cash reserves with the Central bank.
(D) Repo Rate(IV) Reserves in liquid form in the short term

Choose the correct answer from the options given below:

Answer options
Option 4
Correct Answer
Explanation for 2025: 13 May Shift 1 ECO question 2

Q3:

2025: 13 May Shift 1

Money & Banking

Medium

Among the following, which are the functions of money?

(A) Medium of exchange.

(B) Unit of account.

(C) Bartering

(D) Store of value

Choose the correct answer from the options given below:

Answer options
Option 1
Correct Answer
Explanation for 2025: 13 May Shift 1 ECO question 3

Q4:

2025: 13 May Shift 1

Money & Banking

Easy

Money deposited in the banks are considered ______________ of the banks.

Answer options
Option 3
Correct Answer
Explanation for 2025: 13 May Shift 1 ECO question 4

Q6:

2024: 16 May

Money & Banking

Medium

(A) Quantitative tools control the extent of money supply by changing the CRR.

(B) There are two types of open market operations – outright and upright.

(C) A fall in the bank rate can decrease the money supply.

(D) Selling of a bond by RBI leads to reduction in quantity of reserves.

(E) The RBI can influence money supply by changing the rate at which it gives loan to the commercial

banks.

Which of the following statements are true?

Answer options
Option 4
Correct Answer
Explanation for 2024: 16 May ECO question 6

Q7:

2024: 16 May

Money & Banking

Medium

Match List-I with List-II :
List-IList-II
(A) Bank Rate(I) Securities are pledged in order to repurchase
(B) Marginal Standing Facility(II) Minimum rate at which funds are provided for long term
(C) Repo Rate(III) Also known as Penal Interest Rate
(D) Reverse Repo Rate(IV) Central Bank borrows funds from commercial banks

Match List-I with List-II :

Answer options
Option 2
Correct Answer
Explanation for 2024: 16 May ECO question 7

Q8:

2024: 16 May

Money & Banking

Easy

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

Answer options
Option 3
Correct Answer
Explanation for 2024: 16 May ECO question 8

Q9:

2023: 20 June Shift 1

Money & Banking

Medium

When Central Bank buys securities, this agreement of purchase also has specification about date and price of the resale, it is called:

Answer options

Q10:

2023: 20 June Shift 1

Money & Banking

Medium

When Central Bank buys securities without any promise to sell them later, it is known as?

Answer options

Q12:

2023: 20 June Shift 1

Money & Banking

Medium

Arrange the sequence of events in the correct order relating to a quantitative tool used by the central bank during the times of inflation.

A. Hence the money supply in the economy decreases

B. As a result, loans taken by commercial banks become more expensive

C. The central bank increases the bank rate

D. This reduces the reserves held by the commercial banks

Choose the correct answer from the options given below:

Answer options

Q14:

2023: 20 June Shift 1

Money & Banking

Medium

Which of the following is not true about a commercial Bank?

Answer options

Q16:

2023: 11 June Shift 3

Money & Banking

Easy

Calculate the total deposits made by commercial banks when the primary deposit is Rs. 20 Crores and cash reserve ratio is 20%. Choose the correct option.

Answer options

Q17:

2023: 1 June Shift 1

Money & Banking

Medium

Money in the form of currency (Notes+Coins) held by the public, Net Demand deposits held by commercial Banks and the saving deposits with Post Office saving banks are known as :

Answer options

Q18:

2023: 1 June Shift 1

Money & Banking

Easy

This bank does not accept deposits from the public and does not lend to general public :

Answer options

Q19:

2023: 1 June Shift 1

Money & Banking

Easy

Which among the following will lead to a reduction in the money supply of the economy ?

Answer options

Q20:

2023: 30 May Shift 1

Money & Banking

Medium

When in the Economic, Bank rate decrease, Arrange the following statements relating to change in bank rate in the sequencing order :

(A) Loans taken by commercial bank become cheaper

(B) Increases money supply

(C) Bank rate is decreased by RBI

(D) Reserves held by commercial banks increases

Choose the correct answer from the options given below :

Answer options

Q21:

2023: 30 May Shift 1

Money & Banking

Easy

The ratio of money held by the public in currency to that held as deposits in commercial banks is called .

Answer options

Q22:

2023: 30 May Shift 1

Money & Banking

Easy

"The ratio of total money supply to the stock of high powered money in an economy" is referred to :

Answer options

Q24:

2023: 29 May Shift 2

Money & Banking

Medium

Chronologically arrange the following events.

A. Announcement of Demonetisation

B. Circulation of Fake Currency

C. Rs 500 and 1000 Notes lost legal tender

D. Impact on Economic Activities

E. New Rs 2000 Currency Note in the circulation

Choose the correct answer from the options given below:

Answer options

Q25:

2023: 29 May Shift 2

Money & Banking

Easy

The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.

The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.

Which function of central Bank is refered to in the above paragraph.

Answer options

Q26:

2023: 29 May Shift 2

Money & Banking

Medium

The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.

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:

Answer options

Q27:

2023: 29 May Shift 2

Money & Banking

Easy

The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.

How does RBI act as a supervisor to bank?

Answer options

Q28:

2023: 29 May Shift 2

Money & Banking

Easy

The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.

If all the depositors, one day come to withdraw all the cash, what would be role played by RBI?

Answer options

Q29:

2023: 29 May Shift 2

Money & Banking

Medium

The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.

Which of the following is correct statement?

Answer options

Q30:

2023: 28 May Shift 2

Money & Banking

Easy

Repo-Rate is the rate at which RBI lends money to commercial Banks for __________.

Answer options