Category Archives: Economics

  • Consumer Price Index – CPI

    Posted on February 23, 2016 by Admin in Economics.

    Consumer Price Index or CPI is a measure of average change of prices of the various essential consumer goods and services purchased by households over a period of time. It is calculated by periodically collecting the prices of sample items from sample locations. It plays an important role in all the financial decisions of banks […]

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  • Currency Pegging

    Posted on January 23, 2016 by Admin in Economics, Finance Article.

    Foreign Exchange rate is the price/value of a foreign currency expressed in another base currency. Exchange rates may either be fixed or flexible depending on the strategy taken by the respective governments.¬†An exchange rate is flexible or free to move when two countries agree to let the external and other market forces establish the rate […]

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  • Difference between Bank Rate and Repo Rate

    Posted on October 22, 2011 by admin in Economics.

    The Repo rate and Bank rate are almost similar except the difference that Repo rate is applicable to short-term lending specially for overnight lending to banks by the central bank and governed by the short term interest rate and inflation target but Bank rate is applicable to long term lending by the central bank and […]

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  • Monetary Policy Tools – 2

    Posted on October 22, 2011 by admin in Economics.

    Cash Reserve Requirement (CRR) Cash Reserve Requirement or Cash Reserve Ration (CRR) mandates the banks to hold a certain percentage of the deposit in the form of cash or cash equivalents. Banks can lend the rest of the money to the lenders after maintaining the reserve ratio or requirement. Banks do not normally keep the […]

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  • Monetary Policy Tools – 1

    Posted on October 22, 2011 by admin in Economics.

    Bank Rate Bank rate is the rate at which the central bank provides money to the other financial institutions or banks. Bank rate enables the financial institutions (or banks) to borrow money from the central bank to fund any money need. Increase in bank rate leads to higher prime lending rate, the rate at which […]

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