Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

Match List-I with List-II

List-I

List-II

(A) Net Worth

(I) Currency + Deposits

(B) M1

(II) Reserves + Loans

(C) Assets

(III) 1/Cash Reserve Ratio

(D) Money Multiplier.

(IV) Assets - Liabilities

Choose the correct answer from the options given below:

Options:

(A)-(IV), (B)-(I), (C)-(II), (D)-(III)

(A)-(I), (B)-(III), (C)-(II), (D)-(IV)

(A)-(I), (B)-(II), (C)-(IV), (D)-(III)

(A)-(III), (B)-(IV), (C)-(I), (D)-(II)

Correct Answer:

(A)-(IV), (B)-(I), (C)-(II), (D)-(III)

Explanation:

The correct answer is Option (1) → (A)-(IV), (B)-(I), (C)-(II), (D)-(III)

List-I

List-II

(A) Net Worth

(IV) Assets - Liabilities

(B) M1

(I) Currency + Deposits

(C) Assets

(II) Reserves + Loans

(D) Money Multiplier.

(III) 1/Cash Reserve Ratio

(C) Assets → (II) Reserves + Loans: For a bank, assets consist mainly of its reserves (cash and deposits with the central bank) and loans advanced to customers.