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.
Select the option that is related to the fifth letter-cluster in the same way as the fourth letter-cluster is related to the third letter-cluster and th...
Shamita's birthday was on 15 March 2020, which was a Sunday. If her husband's birthday was on 31 May 2020, on which day would it fall?
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A C _ G ...
Which of the following numbers will replace the question mark (?) in the given series?
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A boy starts from point A and walks 11 km towards east and stops at point B. Now, he turns 45 degrees to his right and walks 2 km to reach point C. Now,...
V, W, X, Y and Z are five friends. V, X and Z are fond of Mango. W, X and Y like Apple. V, W and Z like Guava. W, X and Z like Banana. V and Y are fond...
Select the number from the given options which can come in place of the question mark (?) in the following equation.
13.98 – (12.02 ÷ 4.002)...
Which of the following letter-clusters should replace # and % so that the pattern and relationship followed between the letter-cluster pair on the left...
The position of how many letters will remain unchanged if each of the letter in the word 'POCKET' is arranged in alphabetical order?
Amit's birthday on 16th April 2021 was on a Saturday. On which day was his wife's birthday on 3rd June 2021?