✓ Board-verified↻ asked 3×
Economics · 2023 · 1 mark
CBSE 2023 · Region 3 · Set 1 · Q7
If the central bank wants to reduce money supply in the economy, it may ___________.(Choose the correct alternative to fill up the blank)(i)increase Bank Rate(ii)reduce Cash Reserve Ratio(iii)sell securities in the open market(iv)buy securities in the open marketAlternatives :
If the central bank wants to reduce money supply in the economy, it may ___________.
(Choose the correct alternative to fill up the blank)
(i)
increase Bank Rate
(ii)
reduce Cash Reserve Ratio
(iii)
sell securities in the open market
(iv)
buy securities in the open market
Alternatives :
Official answer
From CBSE’s own marking scheme for this paper.
(A)
(i) and (iii)
Marking-scheme solution
(i)
and (iii)
More from Money and Banking
- Read the following information carefully: “The Monetary Policy Committee (MPC) of the Reserve Bank of India…2023 · asked 3×
- Identify, which of the following is not a function of the Reserve Bank of India. (Choose the correct…2023 · asked 3×
- The rate at which commercial banks borrow from the Reserve Bank of India to meet their long term requirements…2023 · asked 3×
- Suppose, for a hypothetical economy, Reserve Ratio (RR) decreases from 25% to 20%, the total deposits would…2026 · asked 3×
- Read the following statements carefully: Statement 1: Primary deposits are the cash deposits by general…2023 · asked 3×
- releases data of money supply in India. (Choose the correct option to fill in the blank)2025 · asked 3×
- Central Bank can decrease the money supply in the economy by. (Choose the correct option to fill in the blank)2025 · asked 3×
- Identify, that function of money, which has effectively solved the problem of ‘double coincidence of wants’…2026 · asked 3×
CBSE Class 12 Economics past-paper question from the 2023board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.