Study Guide · Chapter 6
Money Market & Monetary Policy
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15 key terms | One-line exam reference
| Abbreviation | One-line meaning |
|---|---|
| BANK RATE | Rate at which RBI buys or rediscounts eligible bills. |
| CD | Certificate of Deposit — negotiable money-market instrument issued by eligible banks. |
| CP | Commercial Paper — unsecured short-term money-market instrument. |
| CRR | Cash Reserve Ratio — share of bank deposits kept as cash reserve with RBI. |
| G-SEC | Government Security — debt instrument issued by the central or state government. |
| LAF | Liquidity Adjustment Facility — RBI framework for managing short-term liquidity. |
| MPC | Monetary Policy Committee — committee responsible for setting India’s policy rate. |
| MSF | Marginal Standing Facility — overnight borrowing window for scheduled banks. |
| OMO | Open Market Operations — RBI purchase or sale of government securities. |
| REPO RATE | Rate at which RBI lends short-term funds to banks against securities. |
| REVERSE REPO RATE | Rate at which RBI absorbs liquidity from banks against securities. |
| SDF | Standing Deposit Facility — facility for banks to park funds with RBI without collateral. |
| SLR | Statutory Liquidity Ratio — share of deposits maintained in liquid assets. |
| T-BILL | Treasury Bill — short-term government security issued at a discount. |
| WACR | Weighted Average Call Money Rate — weighted average overnight market rate. |
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