Question
…………………………………………….
allows the RBI to absorb liquidity (deposit) from commercial banks without giving government securities in return to the banksSolution
Standing Deposit Facility allows the RBI to absorb liquidity (deposit) from commercial banks without giving government securities in return to the banks. In the present situation, the main arrangement for the RBI to absorb excess money with the banking system is the famous reverse repo mechanism. Under reverse repo (which is a part of the Liquidity Adjustment Facility), banks will get government securities in return when they give excess cash to the RBI. An interest rate of reverse repo rate is also provided to banks
“According to the survey the consolidation targets must be based on optimistic assumptions.”
This statement is
Which of the following statements is true according to the passage?
What are banks accountable for?
What factors have prompted the monetary authorities to predict that the “improving inflation outlook” gives them comfort to continue to keep...
In what way, do criticisms help ?
What is the tone of the passage according to you?
Which of the following is the second sentence of the passage?
Which of the following is the important manifestation of the RBI’s prognosis for growth?
Which of the following is opposite in meaning to the word 'advancement' occuring in the passage?
...What is the main theme of the above passage?
