CH-1 Money And Banking : Macro-Economics

QUALITATIVE INSTRUMENTS

QUALITATIVE INSTRUMENTS

________ • Moral Suasion (Friendly appeal /notice by RBI to all commercial banks to give lesser loans in order to control money supply) • Margin Requirement (It is the amount of market value of security retained by RBI which is not given as loan.

DD

• ________ (Demand deposits) means money which can be withdrawn on demand by cheques.DD excludes interbank deposits.

QUANTITATIVE INSTRUMENTS

________ • Repo (Repurchase) Rate (The rate at which RBI lends money to commercial banks for meeting its short- term needs.

amount of net demand deposits which commercial banks

(The ________ are supposed to keep with RBI known as CRR or with themselves known as SLR.