Short Answer questions
1.what is CRR?
2. What is bank rate?
3.What is repo rate?
4.What is SLR?
Answers
Answer:
CRR is a cash reserve ratio and SLR is statutory liquidity ratio. Under CRR a certain percentage of the total bank deposits has to be kept in the current account with RBI which means banks do not have access to that much amount for any economic activity or commercial activity.
Bank rate, also known as discount rate in American English, is the rate of interest which a central bank charges on its loans and advances to a commercial bank.
A repurchase agreement, also known as a repo, RP, or sale and repurchase agreement, is a form of short-term borrowing, mainly in government securities.
In India, the Statutory liquidity ratio (SLR) is the Government term for the reserve requirement that commercial banks are required to maintain in the form of cash, gold reserves, Reserve Bank of India (RBI)- approved securities before providing credit to the customers.
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Explanation:
- The capital requirement regulation number is an EU law that's aim to decrease the likelihood that banks go insolvent .
- Bank rate also know as discount rate in American English ,it is a rate of intersted which bank charges on its loan and advance to a commercial loan.
- The repurchase argument also know as repo ,is a form of short term borrowing mainly in goverment security.
- In India statiudy liquidity ratio is the government term for the reverse requirement that commercial bank are required to maintain in the form of gold, reverse bank etc.
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