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.
The second number in the given number-pairs is obtained by performing certain mathematical operation(s) on the first number. The same operation(s) is/ar...
In a code language, 'COUCH' is coded as FLXZK and 'TABLE' is coded as WXEIH. How will 'CHAIR' be coded in the same language?
Which of the following interchange of numbers (not digits) would make the given equation correct?
14 × 4 ÷ 10 + 10 – 20 = 2
If all the letters appearing at the odd number positions in the English alphabet are removed, then what will come at the 9th place in the new alphabet s...
Select the figure that will replace the question mark (?) in the following figure series.
Given below is a statement followed by some conclusions. You have to take the given statement to be true even if it seems to be at variance with the co...
‘Z @ A’ means ‘Z is the son of A’.
‘Z * A’ means ‘Z is the brother of A’.
'Z × A’ means ‘Z is the father of A’.
...C L R T B Q S M A P D I N F J K G Y X
Four of the following five drawn from the above arrangement of letters are alike in a certain way and so fo...
How many triangles are there in the given figure?
Select the correct combination of mathematical signs to sequentially replace the*
signs and to balance the given equation.
12 * 6 * 54 * 6 * 7 = 70
