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Questions › CUET-PG › CUET-PG 2026 › Q47
4 marks, −1Macroeconomics › Money supply and the banking multiplier › Monetary aggregates and the transmission mechanismHardabout 1 min

CUET-PG 2026 Question 47: Money supply and the banking multiplier

The Transmission Mechanism process follow different stages:

A. Change in real money supply

B. Spending adjusts to change in interest rate

C. Portfolio adjustment

D. Output adjusts to the change in aggregated demand

E. Change in asset price and interest rate.

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Money supply and the banking multiplier has come up 74 times in 7 exams since 2005.

What this question tests

This question is on Monetary aggregates and the transmission mechanism, part of Money supply and the banking multiplier in Macroeconomics.

How money is measured and how policy changes reach the real economy.

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Question from the CUET-PG 2026 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.