Which among the following countries offers the Fulbright-Nehru fellowships for Indian students?
where's the world's, Asia's and India's largest solar park..??
If a government/Central Bank follows the policy of quantitative easing. Which of the following would be a likely consequence of this
The Reserve Bank of India on 22 February 2013 released the Guidelines for Licensing of New Banks in the Private Sector.
The initial minimum paid-up voting equity capital for a bank shall be ____ billion
you all guys are doing great work here.. thanks to all of you.. seriously from my heart..
Which one is not a type of treasury bills ?
In which country we can send remittances through NEFT ? (Only Country)
Those guys who are appearing in Mahendra's online test, here is the Thread link for discussion
A person Asked me on chat. pasting it for benefit of all
What REPO and Reverse REPO does is, When both are increased(Mostly in sync) first effect is , Various interest rates may or may not increase( it depends on Bank as u would have seen), but Profit the bank is making will be stressed. Now over all Liquidity which is more Equivalent to Cash, will nt be affected as such if no bank increase the rate. But it happens that when rate was 3 and it was increased to 4, bank will increase the rates as loan rate would be 6 to 7 and people will not mind much. But still some people will be deterred. Thus overall demand for loans will decrease. People will start to save more money. Effect Bank system will have more cash. Since in bank vault cash is useless, bank will purchase reverse repo (4 % )and similar gsec(3%) only and overall liquidity to free market has been subsided and since people are spending less, inflation will subside.
However when rate is too high, i.e 9 percent, It is impossible for banks to go beyond say 11%, as it knows that, beyond that there wont be any takers and system will collapse. in this case, despite the raise in rate, They wont increase the bank rate. Result, Liquidity will not be affected. But there is still an impact. Banks will not purchase Repo to loan unless deal is good. So Liquidity is still being reduced but effect is less. Similarly when Repo is reduced from these level, Bank do not pass the benefits to customer immediately. Result is despite reducing rates by few base point, liquidity is not substantially increased. That is why when last time liquidity crunch was there, government chose to decrease CRR which infused the immediate liquidity. Change in SLR is also infuses immediately as rates offered on these sec is very less and not profitable.
Reverse repo is thus more useful when rates are high and demand is less. So bank park as much as they can with RBI. As high Repo means high reverse repo as well. Those rates may differ a lot, but it will hurt the business so is never done. When Rates are less, Repo is more used, Demand is high, bank needs money and they go for Repo lot more than what they would do. had the rates been higher. So yeah, overall effect is it affects the Liquidity.
The regulator of Commodity Market in India is
How many branches of Mahila Bank has ben proposed in the first cycle
Headquarter of Bharatiya Mahila Bank ??
Best Professional Photographer of the Year 2011-12________ (given away on 28 March 2013)
________Conferred With the Most Efficient Maharatna-In Manufacturing for the Year 2012 Award.
Which of the following price indices in India is considered for measuring HEADLINE INFLATION?
Indian Navy most advanced stealth frigate warship commissioned from russia :
Cochin shipyard Ltd on january 13 launched the first patrol vessel (FPV) named
Oldest public sector bank in India:
Tropic of cancer passes through how many states in India?
What would be the colour of COCA COLA, If Colouring agents were not added?