✓ Board-verified
Economics · 2024 · 1 mark
CBSE 2024 · Region 3 · Set 1 · Q5
Read the following statements carefully: Statement 1: Reserve ratio and Credit creation process are inversely related. Statement 2: Central Bank of…
Read the following statements carefully :Statement $\displaystyle 1$ : Reserve ratio and Credit creation process are inversely related.Statement $\displaystyle 2$ : Central Bank of an economy performs the vital function of controlling the credit creation process.In light of the given statements, choose the correct alternative from the following :
Official answer
(C)
Both Statements $\displaystyle 1$ and $\displaystyle 2$ are true.
Marking-scheme solution
(C)
Both Statements $\displaystyle 1$ and $\displaystyle 2$ are true.
More from Money and Banking
- Read the following information carefully: “The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), recently increased the Repo Rate…2023
- Identify, which of the following is not a function of the Reserve Bank of India. (Choose the correct alternative)2023
- “An increase in the credit creation capacity of commercial banks has a direct impact on the money supply in an economy.” Discuss the given statement.2024
- The rate at which commercial banks borrow from the Reserve Bank of India to meet their long term requirements is known as. (Choose the correct…2023
- Suppose, for a hypothetical economy, Reserve Ratio (RR) decreases from 25% to 20%, the total deposits would to ₹, if primary deposits are ₹ 1,000.…2026
- Read the following statements carefully: Statement 1: Primary deposits are the cash deposits by general public with commercial banks. Statement 2:…2023
- releases data of money supply in India. (Choose the correct option to fill in the blank)2025
- Central Bank can decrease the money supply in the economy by. (Choose the correct option to fill in the blank)2025
CBSE Class 12 Economics past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.