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Econ: money > Tools of monetary policy to PSL > Flashcards

Tools of monetary policy to PSL Flashcards

1
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1) The 3 motives for preference for liquidity?

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2
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2) How current account works? The 3 Os?

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3
Q

3) What is the one asset of any bank?

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4
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4) What are the 3 time liabilities of a bank?

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5
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5) Current Account, Savings account, Demand drafts are obviously demand liabilities. What are the other 2 less obvious demand liabilities?

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6
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6) What is Narrow money?

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7
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7) What is broad money?

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8
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8) What is aggregate money?

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9
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9) What is difference between G-secs and T-bills?

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10
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10) The 3 agencies that buy G-secs and T-bills?

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11
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11) If buyers are not found for Government Securities, who buys them?

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12
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12) Who circulates the coins and 1Rs Notes issued by Government

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13
Q

13) Why is M1-M4 greater than M0?

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14
Q

14) What is the liability of RBI In one line?

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15
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15) What is both a liability and an asset for RBI?

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16
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16) Apart from Rupee coins, what are the 3 assets of the issue department of RBI?. Hint:- CBS

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17
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17) What is the one rule that RBI must follow while issuing currency?

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18
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18) Are repo deposits an asset or a liability of the RBI?

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19
Q

19) Coins and currency in circulation are obviously with public. What part of bank’s money is considered in M0

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20
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20) What is the 3rd source of M0 apart from Banks and Public?

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21
Q

21) Can the public deposit money with the RBI?

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22
Q

22) What is the theoretical formula for money multiplier?+ 3 reasons for deviation from this formula?

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23
Q

23) Why incremental CRR was introduced?

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24
Q

24) What are the 2 factors on which velocity of money circulation depends?

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25
Q

25) CRR, SLR are based on which acts?

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26
Q

26) Is any profit earned on CRR? On SLR?

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27
Q

27) Explain the conceptual difference between CRR and SLR?

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28
Q

28) CRR, SLR are explained as percentages of what?

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29
Q

29) Is there any legal limit on CRR, SLR ?

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30
Q

30) Does the SLR have an effect on money multiplier?

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31
Q

31) What is Bank rate?

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32
Q

32) What is repo rate?

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33
Q

33) Which are the target institutions for repo rate?

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34
Q

34) What is another name for Repo rate?

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35
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35) What is the collateral in Repo rate?

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36
Q

36) What is MSF and how it is different from LAF?

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37
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37) What is the margin between MSF and LAF?

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38
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38) Derive from first principles: What is the difference between the target institutions for MSF and LAF. Which of these two have limits on borrowing?

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39
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39) Why are MSF and LAF less effective in India for monetary policy transmission in India?

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40
Q

40) What is Tri party repo agreement?

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41
Q

41) Who is the custodian in tri party repo?

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42
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42) What are the 2 advantages of Tri party repo?

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43
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43) What is the margin between repo and reverse Repo?

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44
Q

44) what is reverse repo also known as?

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45
Q

45) What are the 3 “window” operations by RBI?

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46
Q

46) What is the “policy corridor”?

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47
Q

47) When is the “policy corridor” altered?

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48
Q

48) Why do banks borrow usually?

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49
Q

49) What are the 2 rates in inter bank borrowing?

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50
Q

50) What is OMO?

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51
Q

51) What is MSS?

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52
Q

52) What is Standing deposit facility?

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53
Q

53) Who recommended Standing Deposit Facility?

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54
Q

54) When was SDF announced and is it functional today?

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55
Q

55) Generally explain with examples, the differences between quantitative and qualitative for transmission of Monetary policy

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56
Q

56) Just name the 4 qualitative tools for Monetary Policy transmission?

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57
Q

57) Explain margin requirement/LTV ratio?

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58
Q

58) What is the need for selective credit control?

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59
Q

59) Explain -ve selective credit control with the 2 examples?

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60
Q

60) Explain +ve selective credit control with the 2 examples?

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61
Q

61) When did the RBI first use the word PSL?

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62
Q

62) How much PSL quota in India and what are the 4 splits in PSL quota?

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63
Q

63) How much subquota for weaker sections in PSL and what is the subsplit in that?

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64
Q

64) How much subquota for Agriculture in PSL and what is the subsplit in that?

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65
Q

65) How much subquota for MSME and KVIC in PSL and how are they defined?

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66
Q

66) New categories added to PSL in 2015. Expand: PXSSRFV

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67
Q

67) Across commercial, cooperative and NBFI categories, name the entities on which PSL is not applicable?

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68
Q

68) Sub category of commercial banks on which 40 % PSL is applicable?

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69
Q

69) Sub category of commercial banks on which 75 % PSL is applicable?

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70
Q

70) Differential bank with 40% PSL?

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71
Q

71) Is PSL applicable on cooperative banks?

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72
Q

72) What if a company fails to uphold PSL obligations?

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73
Q

73) What are PSL certificates?

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74
Q

74) Where PSLC are sold?

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75
Q

75) What are the 3 categories of PSL under which PSLC are sold?

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76
Q

76) Explain CRR, SLR and PSL applicablity on RRBs, Cooperatives?

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Econ: money (4 decks)

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