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.
Which of the following statements are not a part of the financial statements as per Companies Act?
As per Companies Act, a Prospectus is to be issued within _______ from the date of delivery of prospectus to the Registrar.
As per Section 26(9) of Companies Act 2013, what is the amount of fine in case the prospectus is issued in contravention of the section related to matte...
Which of the following Section deals with ‘Company to accept unpaid share capital, although not called up’?
Within how many days of incorporation should the first meeting of Board of Directors to be held according to Companies Act, 2013?
What is the maximum Managerial Remuneration that can be paid in case of Absence or Inadequacy of Profit?
The appointment of Directors is to be approved by company in ____
Which of the following does not form the part of a Negotiable Instrument as per Negotiable Instruments Act, 1881?
As per Companies Act, 2013, the balance in Securities Premium account can be used for the following purposes except _________
