Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

Match the following statements in column I with the correct statements in column II.

 

Options:

a-iii, b- iv, c - i, d-ii

a-iii, b-iv, c-ii, d-i

a-iii, b-ii, c-iv, d-i

a-iv, , b-ii, c-iii, d-i

Correct Answer:

a-iii, b- iv, c - i, d-ii

Explanation:

The correct answer is Option 1: a-iii, b- iv, c - i, d-ii

(a-iii) Repurchase rate is the rate at which central bank i.e. RBI lends money to commercial banks for their short term needs.
(b-iv) Money Supply is a stock concept. The total stock of money in circulation among the public at particular point of time is called money supply. 
(c-i) CRR is fixed by the RBI
(d-ii) M1 and M2 are known as narrow money.