List of top Economics Questions on Monetary Policy asked in CUET (UG)

In India, which authority regulates and sterilises the money supply in the economy?

The purchase or sale of government securities by the central bank to increase or decrease the money supply in the economy is called?

Which of the following is a quantitative instrument of credit control by the Central Bank?

The Reserve Bank of India purchases government securities worth \(₹5,000\) crore from the open market. Assuming Cash Reserve Ratio remains unchanged, the immediate effect of this operation will be:

Which of the following is a quantitative tool of the Reserve Bank of India (RBI)?

The flow of goods and services along with factors of production across different sectors in a barter economy is known as:

Arrange the following statements in the correct chronological order with respect to open market operations: \[ (A)\ \text{Payment for bonds increases total reserves in the economy} \] \[ (B)\ \text{RBI buys government bonds from the market} \] \[ (C)\ \text{RBI sells bonds when there is excess money supply} \] \[ (D)\ \text{Higher reserves increase money supply in the economy} \]

Arrange the following statements in the correct chronological order with respect to open market operations:

• [(A)] Payment for bonds increases total reserves in the economy
• [(B)] RBI buys government bonds from the market
• [(C)] RBI sells bonds when there is excess money supply
• [(D)] Higher reserves increase money supply in the economy

Arrange the following statements in the correct chronological order with respect to open market operations: \[ (A)\ \text{Payment for bonds increases total reserves in the economy} \] \[ (B)\ \text{RBI buys government bonds from the market} \] \[ (C)\ \text{RBI sells bonds when there is excess money supply} \] \[ (D)\ \text{Higher reserves increase money supply in the economy} \]

Arrange the following statements in the correct chronological order with respect to open market operations: \[ (A)\ \text{Payment for bonds increases total reserves in the economy} \] \[ (B)\ \text{RBI buys government bonds from the market} \] \[ (C)\ \text{RBI sells bonds when there is excess money supply} \] \[ (D)\ \text{Higher reserves increase money supply in the economy} \]

Arrange the following statements in the correct chronological order with respect to open market operations: \[ (A)\ \text{Payment for bonds increases total reserves in the economy} \] \[ (B)\ \text{RBI buys government bonds from the market} \] \[ (C)\ \text{RBI sells bonds when there is excess money supply} \] \[ (D)\ \text{Higher reserves increase money supply in the economy} \]

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

Match List-I with List-II \[ \begin{array}{|c|l|c|l|} \hline \textbf{List-I} & & \textbf{List-II} & \\ \hline (A) & \text{Cash Reserve Ratio (CRR)} & (I) & \text{Central Bank of the Country} \\ \hline (B) & \text{Statutory Liquidity Ratio (SLR)} & (II) & \text{The interest rate at which the money is lent by Central Bank} \\ \hline (C) & \text{Lender of last resort} & (III) & \text{Percentage of deposits which must be kept as cash reserves with the Central Bank} \\ \hline (D) & \text{Repo Rate} & (IV) & \text{Reserves in liquid form in the short term} \\ \hline \end{array} \]

Arrange the following steps in the correct sequence when RBI sells government bonds in the open market:
(A) The money supply in the economy decreases.
(B) Banks have fewer reserves available for lending.
(C) Private individuals or institutions buy the bond from RBI.
(D) The payment made to RBI reduces reserves in the banking system.
Choose the correct answer from the options given below:

Currency notes and coins are called: