Start learning 50% faster. Sign in now
Reverse repo operation is when RBI borrows money from banks by lending securities. The interest rate paid by RBI in this case is called the reverse repo rate. MSS securities are issued with the objective of providing the RBI with a stock of securities with which it can intervene in the market for managing liquidity. Open market operations are conducted by the RBI by way of sale or purchase of government securities (g-secs) to adjust money supply conditions. The central bank sells g-secs to suck out liquidity from the system and buys back g-secs to infuse liquidity into the system. These operations are often conducted on a day-to-day basis in a manner that balances inflation while helping banks continue to lend. The RBI uses OMO along with other monetary policy tools such as repo rate, cash reserve ratio and statutory liquidity ratio to adjust the quantum and price of money in the system. CMBs in India are non-standard, discounted instruments issued by government to meet temporary mismatches in the cash flow of the government. First set of CMBs were issued in May 2010. CMBs have the generic character of Treasury Bills but are issued for maturities less than 91 days. CMB is the most flexible instrument for a central bank because it can be issued when needed, allowing the central bank to have lower cash balances and issue fewer long-term notes.
The Headquarters of INTERPOL is situated at
Who among the following founded 'The Deccan Sabha'?
For book-built issues opening on or after April 1, 2022, SEBI said ________ of the portion available to NIIs will be reserved for applicants with applic...
Which of the following player is associated with squash?
Whose birth anniversary is celebrated as Rastriya Ekta Divas or Natioal Unity Day
______ state has launched the School of Eminence Scheme recently?
Who has been appointed as the Vice Chancellor of JawaharLal Nehru University?
Actor Robbie Coltrane passed away at the age of 72, he played a role in which Hollywood movie?
NISHTHA is an initiative to build capacities of educators and school principals at the elementary stage. What does the “T” stand for in NISHTHA?
...If in a certain language, DIVINE is coded as EKYMSK, which word will be coded as JOYFUL?