Answer Posted / ridhvik

Repo and Reverse Repo are tools available in the hands of
RBI to manage the liquidity in the system. It either
injects liquidity into the market if the conditions are
tight or sucks out liquidity if the liquidity is excess in
the system through the Repo and Reverse Repo mechanism,
besides a host of other measures.

Now in REPO RBI injects liquidity into the system i.e. it
purchases the securities from the banks and lends money to
them to ease their liquidity crunch. The rate charged by it
for lending money is the REPO rate.

Reverse REPO is the opposite of REPO: When liquidity is
excess in the system. RBI sucks it out by Reverse REPO by
lending securities and taking out money from banks. The
rate charged for it is the Reverse Repo rate.
These rates, form the bottom and the top of the Call money
lending/borrowing of the banks. The call money rates
generally fall in between this corridor.

Is This Answer Correct ?    176 Yes 12 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

what are valuation accounts?

1576


am attend to bank exam(iob)pls send model questions

1623


Fiscal year variant F1 has 6 posting periods and fiscal year variant F2 has 4 posting periods. The posting have different start and ending dates.assign posting period variant F1 is assigned to leading ledger (0L) and F2 is assigned to the non-leading ledger(N1). You get an error message when making a posting in the non-leading ledger.?( any 1 answer) • The posting period variant of the non-leading ledger and the leading are different • The fiscal year variant of the non-leading ledger and the leading ledger are different • The posting is being made in a special period, but both variants are examples of a shortened fiscal year • The posting period for the non leading ledger group”N1” is closed

1456


is advance against FD or RD is treated as NPA .if EMI is not in scheduled . or classification of npa as per day is is made from sanction date or last payment date of repayment . please suggest me

1744


Tell me the steps for Import and Export Thanks

1475






what are the uniform public construction cost accounting act procedures?

1525


sir i'm having exp as a HR-Recruiter, now i'm willing to work in other areas of HR.Is learning of accounting courses such as (Payroll mgmt,TDS, service tax, vat, provident fund, gratuity fund, Tally ERP.9 )is necessary? if so, kindly guide me what all accounting courses i need to study to work in other areas of HR. or what are the qualifications required to work in other areas of HR? 2)one of my friend would like to know the job profile for Finance admin..

1555


What is the journal entry for Call and a Put option both in the books of buyer and seller

9347


Examples of automatic generated content material of car logbook loans?

1332


someone plz plz plzz.. send me the sample papers for SBI clerical xams... i need it very badly..

2047


What is the relationship between, issued share capital, share premium and paid up capital?

1898


what are the seven accounting rules

1678


whts is the meaning of over cost and under cost, what is difference ?

11398


Who is the maker of the promissory note

1523


Assets are held in the Business for the purpose of____________________

1766