Question
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?Solution
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.
Complicated
Select the option that can substitute the highlighted segment in the given proverb correctly. If there is no need to substitute it, select ‘No substit...
Select the most appropriate option to substitute the underlined segment in the given sentence. If there is no need to substitute it, select ‘No subst...
Person who insists on adherence to formal rules or literary meaning
In the questions given below out of five alternatives, choose the one which can be substituted for the given word/sentence.
One who draws maps...
The power or right to make judgments about the law, to arrest and punish criminals, etc.
Select the most appropriate word for the given group of words. Â
A person who eats the flesh of other human beings.
I sit behind the counter and wait for a customer to come in and by something, but they all walk past the window as though the place were invisible.
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Select the most appropriate option that can substitute the bold segment in the given sentence.
Not only is my brother intelligent though hard w...
