Studied by 2 people
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• ________ (Demand deposits) means money which can be withdrawn on demand by cheques.DD excludes interbank deposits.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.
