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Solution:-

Statutory liquidity ratio refers to the minimum percentage of time and demand deposits, required to be kept by commercial banks with themselves. SLR is maintained in the form of designated liquid assets such as excess reserves, unencumbered, government and other…

Cash Reserve Ratio refers to the minimum percentage of time and demand deposits, required to be kept by every commercial bank with the central bank. Additional information:- It is one of the tools of the monetary policy of the RBI…

Legal Reserve Requirements (LRR) refer to the minimum percentage of total deposits (time deposits and demand deposits), required to be kept by the commercial banks with themselves and with the central bank. It has two components 1. Cash Reserve Ratio…

Open market operations refer to the sale and purchase of securities (mainly government securities) in the open market by the central bank. Explanation:- Open Market Operations refers to the buying and selling of securities, mainly government securities, by the central…

The money supply will reduce Explanation:- The bank rate is the rate at which the central bank of a country lends money to commercial banks to meet their long-term needs. A bank rate is a monetary tool to control the…

The bank rate is the rate at which the central bank of a country lends money to commercial banks to meet their long-term needs. Additional Information:- A bank rate is a monetary tool to control the money supply in the…

Time deposits refer to those deposits, in which the amount is deposited with the bank for a fixed period of time. Additional Information:- Fixed deposits refer to those deposits, in which the amount is deposited with the bank for a…

When commercial banks fail to meet their financial requirements from other sources, i.e., in case of financial emergency, they approach the central bank to give loans and advances as ‘lender of the last resort’. Additional information:- It means that if…