Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

Arrange the following money supply measures in chronological order.

(A) Excess supply will prevail in the economy.
(B) The tendency of prices to change to restore equilibrium.
(C) Suppose market supply is greater than market demand at a given price.
(D) Hence, the market is not in equilibrium.

Choose the correct answer from the options given below:

Options:

(C), (A), (D), (B)

(B), (A), (C), (D)

(B), (A), (D), (C)

(C), (B), (D), (A)

Correct Answer:

(C), (A), (D), (B)

Explanation:

The correct answer is Option (1) → (C), (A), (D), (B)

(C) Suppose market supply is greater than market demand at a given price. This sets the scenario — excess supply in the market.
(A) Excess supply will prevail in the economy. This is the result of the situation mentioned in (C).
(D) Hence, the market is not in equilibrium. Because of excess supply, equilibrium is disturbed.
(B) The tendency of prices to change to restore equilibrium. Finally, prices adjust to restore balance between supply and demand.