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.
A company is practicing _______ if it focuses on sub segments with distinctive traits that may seek a special combination of benefits.
A company faces several major decisions in international marketing. The first of these decisions is often:
Mouth parts in thrips belong to the type
A portal to resolve farmers and stakeholders problemsÂ
Which one of the following crops are grown to increase soil fertility?
The major difference between prokaryotes and eukaryotes includes
Which one of the following is not a component of ‘disease triangle’
Blind hoeing is possible in:
Which disease(s) induce floral abnormalities?
The land use system involving trees combined with crops and/or animals is called
