The ratio of liquid assets to demand and time liabilities is known as Statutory Liquidity Ratio (SLR).
2. What are Repo rate and Reverse Repo rate?
Repo (Repurchase) rate is the rate at which the RBI lends shot-term money to the banks.
Reverse repo rate signifies the rate at which the central bank absorbs liquidity from the banks
3. What is the difference between Bank Rate and Repo Rate?
Bank Rate is the rate at which RBI allows finance to commercial banks in India
Repo is a money market instrument, which enables short term borrowing and lending.
4. What is a bank?
A bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money.
5. What is Banking Business?
Banking Business is the business of receiving money on current or deposit account, paying and collecting cheques drawn by or paid in by customers.
6. What is Accounting for Bank Accounts?
There are two types of accounts Debit and Credit.
7. What are the Economic functions of Banks?
- Issue of money
- Netting and settlement of payments
- Credit Intermediation
- Credit quality improvement
- Maturity transformation
The major factor affecting Bank interest rate is inflation. An increase in inflation leads to an increase of interest rate.
9. What are the different channels of Banking you use in your daily life?
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