List of top Economics Questions on Money and Banking asked in CUET (UG)

The narrow measure of money supply is known as:

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

Under flexible exchange rate, when the price of domestic currency in terms of foreign currency increases, it is called_______

Match List-I with List-II:

List-I		List-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

European Monetary Union was created in __________.

Which of the following statements are true ?
(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.
Choose the correct answer from the options given below :

Choose the correct chronological sequence in ascending order (earliest to latest) :
(A) Establishment of NABARD
(B) FRBMA (Fiscal Responsibility and Budget Management Act)
(C) Third Five Year Plan
(D) Nationalization of RBI

Match List-I with List-II:

List-I (Characteristic)		List-II (Implication)
A	Equilibrium	(I)	Plans of all the consumers and firms in the market match
B	Excess supply	(II)	Demand decreases with an increase in income
C	Inferior good	(III)	Supply is greater than market demand
D	Price ceiling	(IV)	Imposition of upper limit by government

During festive season, the currency deposit ratio _____________ .

India got its Central bank in :

Bank Rate is:

The first and foremost role of money is that it acts as a :

Match List I with List II

List I		List II
A.	Bank Rate	I.	Rate at which RBI tends Commercial Banks for short period of time
B.	Open market operation	II.	Determined by Commercial Banks at which loan is given
C.	Repo Rate	III.	Rate at which RBI lends to Commercial Banks
D.	Interest Rate	IV.	Buying & selling of bonds

Choose the correct answer from the options given below :

Functions of central bank are:
(A) SLR
(B) CRR
(C) Open market operations
(D) Banker's Bank
(E) Issue of currency
Choose the correct answer from the options given below:

Match List I with List II

List I		List II
A.	Institution that accept public deposits	I.	Issuance of currency notes
B.	The central Bank of India	II.	Acceptance of deposit from public
C.	Function of a Central bank	III.	Reserve bank of India
D.	Function of Commercial bank	IV.	Commercial bank

Choose the correct answer from the options given below :

"Which of the following function is not performed by the Central bank?

Under Statutory Liquidity Ratio, commercial banks are required to keep a function of ________ in the form of liquid assets.

Arrange the following in sequence for the impact on economy when central bank raises Repo rate :
A. People will take less loan.
B. Money supply will decrease in economy.
C. Borrowing become costlier.
D. Commercial banks will increase interest rate.
E. Aggregrate demand will decrease.
Choose the correct answer from the options given below :

Which of the following is not a part of money supply?

Identify the correct statements from the following:
(A) When central bank buys securities without any promise to sell them later is called injecting
(B) Open market operations in buying and selling of securities by the commercial bank
(C) Open market operation leads to a change in bank rate
(D) When central bank sells securities without any promise to buy them later is called injecting
(E) RBI influences money supply through open market operations
Choose the correct answer from the options given below: