Economics › RBIXLiquidity Management

If the interest rate is decreased in an economy, it will

The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in news, are used in relation to:

An increase in the Bank Rate generally indicates that the

Supply of money remaining the same when there is an increase in demand for money, there will be

In the context of Indian economy, ‘Open Market Operations’ refers to

Which of the following measures would result in an increase in the money supply in the economy?
1. Purchase of government securities from the public by the Central Bank
2. Deposit of currency in commercial banks by the public
3. Borrowing by the government from the Central Bank
4. Sale of government securities to the public by the Central Bank

Consider the following statements:
1. An increase in the rate of interest may lead to an increase in the rate of inflation.
2. An increase in the rate of interest may lead to a decrease in the level of investment.
3. An increase in the rate of interest may lead to an increase in the rate of savings.
Which of the statements given above is/are correct?

When the Reserve Bank of India announces an increase of the Cash Reserve Ratio, what does it mean?

Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government ?