Give the meaning of the following:
i. Repo rate
ii. Reverse repo rate
iii. Borrowing rate
iv. Lending rate
Asked by Topperlearning User | 18th Apr, 2016, 12:21: PM
- Repo rate is the rate of interest at which Commercial bank can raise short term loans from the RBI for a period of 1-14 days.
- Reverse repo rate is the rate at which Commercial banks can keep their certain portion of surplus amount with RBI for short period.
- Rate of interest offered by the Commercial banks to deposit holders is called the borrowing rate.
- Rate at which Commercial banks lend out their reserves to investors is called the lending rate.
Answered by | 18th Apr, 2016, 02:21: PM
- Who supplies money in an economy?
- What is the difference between demand and term deposits?
- What are the four alternative methods to measure supply of money?
- What is the narrow definition of money and broad definition of money?
- Differentiate between fiat money and fiduciary money.
- What are legal tenders?
- Explain the preference of the public to hold cash balances versus deposits in banks which influences the supply of money.
- What is bank rate?
- What are the primary functions of Commercial banks?
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