In the framework of monetary policy, central banks employ various tools to manage liquidity and control inflation within the economy. One such tool involves the interest rate at which commercial banks lend their surplus funds to the Reserve Bank of India (RBI) in exchange for eligible government securities. This process helps the central bank to absorb excess liquidity from the banking system, thus playing a crucial role in controlling inflation and stabilizing the financial system. Understanding this term is essential for anyone studying or working in the financial sector.
What term designates the interest rate at which commercial banks, as part of the monetary policy framework, engage in the process of lending surplus funds to the Reserve Bank of India in exchange for eligible government securities?
The reverse repo rate is the interest rate at which commercial banks lend their surplus funds to the Reserve Bank of India (RBI) in exchange for eligible government securities. This mechanism is a critical component of the RBI's monetary policy toolkit, used to absorb excess liquidity from the banking system and help control inflation. By adjusting the reverse repo rate, the RBI influences the amount of money that banks can lend, thereby impacting overall economic activity and price stability.
3 In the following question below are given some statements followed by some conclusions based on those statements. Taking the given statements to be t...
In a party, every couple has at least one child (all minors) with them and there are 12 couples. Which one of the following inferences would be possible?
Infant jaundice is yellow discoloration of new born baby's skin and eyes which occurs because the baby's blood contains an excess of a yellow pigment c...
Statements: T ≤ K = E ≤ Q, J = Q < H ≤ S ≤ V, A ≤ V < O = Y
Conclusions: I. T < V II. O ≥ H
Statements: K @ L; M & O, N % L, K $ O
Conclusions: I. O @ L II. M @ L III. K # N
...In the following question below are given some statements followed by some conclusions based on those statements. Taking the given statements to be true...
Statements: Only heater are blowers. Some geyser are cable. Only a few heater are geyser.
Conclusions: I. Some cable are heater. II. Some heater ...
Read the statements and identify which of the conclusions logically follow/s from the given statement.
Statement:
Parents are ready to ...
For a trophy, 16 teams participate, numbered 1-16 according to their rankings. In the qualifier matches, the teams face their immediate next lower ranke...
Statement: M > N ≥ P > Q ≥ R > S ≥ T ≥ U > W
Conclusion:
1. U ≤ S
2. S < Q
