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It is the rate of interest at which the central bank (Reserve Bank) accepts deposits from commercial banks. Additional Information:- It is the rate of interest at which the Central Bank (Reserve Bank of India) accepts deposits from Commercial Banks.…

Initial Cash Deposits. Additional Information:- Credit creation depends upon two factors. 1. Initial cash deposits 2. LRR Credit Creation is directly related to initial cash deposits and inversely related to the Legal Reserve Ratio. Credit Creation = Initial Cash Deposits…

The repo rate is the rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds. Additional Information:- The rate at which the RBI (central bank) offers short-period loans…

The difference between the market value of security and the value of the amount lent is called the margin requirement. Additional Information:- 1st Definition:- Margin requirements refer to the discount fixed by the central bank on the assets mortgaged as…

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