Answer / brindpreet

repo rate is the rate at which the rbi lends short term
funds to the commercial banks

Answer / sanjay mandal.

repo rate is the rate of interest which is fixed by rbi to
lend money to bank & taking bank securites.

reverse repo rate is the rate at which rbi taking out money
from the bank and return the bank security to the bank it
is also decided by rbi itself.

repo rate and reverse repo rate both are decided by rbi to
control thr liqudity in the system.

repo rate increase to inject liqudity in the system and
reverse repo rate decided to taking out money(sucking out)
in the system.

Answer / navin dubey

Repo rate is a rate on which rbi lend omney to the
commercial bank and take securities from there.

Answer / abhilasha kadian

repo rate is the rate at which bank borrows money from RBI
and it is a way through which rbi injects liquidity in the
economy

Answer / ashwani

the rate at which central bank repurchase government
securities from the commercial banks to inject liquidity in
the market.

Answer / juby

reporate is the intrest rate at which rbi lends to other
banks.Repo rate increase 'll increase the cost of borrowing
of banks.Or it may indirectly tents to increase the loan
rates.

Answer / sachin sharma

Whenever the banks have any shortage of funds they can
borrow it from RBI. Repo rate is the rate at which our
banks borrow rupees from RBI. A reduction in the repo rate
will help banks to get money at a cheaper rate. When the
repo rate increases borrowing from RBI becomes more
expensive

Answer / merin

repo rate is the rate at which banks borrow money from RBI

Answer / ashish srivastav

Repo is short term whereas Bank rate is long term. Thus
Repo rates are also called short term lending rate and Bank
rates are called long term lending rates. Now if the Repo
rate > Bank rate, it signifies that short term borrowing of
funds is more expensive for commercial banks. Incedentally,
this short term borrowing through Repo is required by the
banks to maintain its CRR. Thus if Repo rate is increased,
bank will reduce its lending to public because to maintain
the CRR bank will have to now borrow from RBI at a higher
Repo rate. Thus increase of Repo is done to suck liquidity
from the economy.

Answer / harsha

This is one of the tool that RBI has to control
liquidity/inflation.

When RBI revises the rate for lending MONEY against
Securities to BANKS, it is called REPO RATE. Here, the RBI
is the Lender and the Banks are the borrower. If the REPO
rate is raised by the RBI, then Banks have to borrow money
at higher rate.

When RBI revises the rate for lending SECURITIES for Money
to BANKS, it is called REVERSE REPO RATE. Here, the RBI is
the Borrower and the Banks are the Lender. If the REVERSE
REPO rate is raised by the RBI, then RBI has to borrow
money at higher rate.

what is ledger account

0 Answers  

DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in Haryana. The company’s sales in the year ending on 31st March 2007 were Rs.1000 million (Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of return of the company is 14 percent. The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30million per annum. The plant can be sold for Rs.55 million at the end of its economic life. The company would need to raise debt to the extent of Rs.200 million. The company has the following options of borrowing Rs.200 million: a. The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annual installment of interest and repayment of principal. b. A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: 1. Should the company expand its capacity? Show the computation of NPV 2. What is the annual installment of bank loan? 3. Calculate the quarterly installments of the Financial Institution loan 4. Should the company borrow from the bank or from the financial institution?

0 Answers  

What is the role oF Jr Financial Analyst ? And what are the General Questions Asked for this Profile For freshers ?

0 Answers  

wht can u do for the growth of bhel?

0 Answers   Dalmia Group,

AT THE TIME OF REDEMPTION OF DEBENTURES. WHEN THERE IS PROFIT/LOSS ON SALE OF DEBENTURES WE TRANSFER THAT AMOUNT IN PROFIT AND LOSS A/C BUT WHEN WE CANCEL OUR DEBENTURES AFTER BUYING IT FROM OPEN MARKET THE DIFFERENCE BETWEEN MARKET VALUE AND COST OF DEBENTURES TRANSFER TO "CAPITAL RESERVE ACCOUNT .. WHY SO ANY PRACTICAL ANSWER ??

0 Answers  

Answered but misspelled pl correct BOOK kEEPING IS AN ACTIVITY CONCERNED WITH (Ans.RRECOGDIN)

1 Answers  

CONTIGENT LIABILITYES

11 Answers   Accenture, Genpact, Siemens,

What is Goods Lost by Fire/Accident/Theft ?

0 Answers  

Hay I am suresh from Bastar. I was just complete my interview on 29-04-2010 at Raipur. The panel Board asked a questions are

2 Answers   State Bank Of India SBI,

Expand NSDAQ ?

2 Answers   FactSet Systems,

Distinguish between trade bill and Accommodation bill

3 Answers   DELL,

while passing a journal entry we rite dr. for the a/c to be debited but why don't we write cr. for the a/c which is credited and instead write 'TO'??

0 Answers