Repo and reverse repo rate These are the rates which are used by reserve banks (RBI in India) to inject or absorb liquidity from banking system. Repo rate is the rate at which the RBI lends money to the commercial banks or the rate it which banks borrow money from RBI. When RBI increases repo rate borrowing from RBI becomes more expensive. RBI increases repo rate to make it more expensive for the banks to borrow money. If RBI reduces the repo rate means banks can borrow money at cheaper rates.
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The Repo Market Background The repo market – from “sale and repurchase” agreement – was introduced by the US Federal Reserve in 1918 as the main tool of the Federal Reserve’s Money Market Operations. Repos were used to drain liquidity from the US banking system and to add liquidity as required. The size of the Repo Market: Gross amounts outstanding at year end 2007 of roughly $10 trillion (double counting of repos and reverse repos) in the US (70% of US GDP) and €6 trillion in the Euro Repo
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QUESTION ONE Name Five Approaches to Psychology 1. Social Psychology Social psychology is about understanding individual behaviour in a social context. Baron‚ Byrne‚ and Suis (1989) defined social psychology as “the scientific field that seeks to understand the nature and causes of individual behaviour in social situations”. It therefore looks at human behaviour as influenced by other people and the social context in which it occurs. 2. Comparative Psychology This is a science which studies
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Kyle Stallings SYG 2000 10/30/13 Three Theoretical Approaches Sociologists today employ three primary theoretical perspectives; the symbolic interactionist perspective‚ the functionalist perspective‚ and the conflict perspective. These perspectives offer sociologists theoretical paradigms for explaining how society influences people‚ and vice versa. Each perspective uniquely conceptualizes society‚ social forces‚ and human behavior. The symbolic interactionist perspective uses symbols and
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Macro-Economics Assignment on REPO – RATE And Its Effects Under Guidance of: Dr. (Mrs.) Neetu Jain Faculty – Macroeconomics‚ BVIMR By: Amit K. Lal – 0141MBA023 Chirag Budhiraja – 0141MBA048 Akhilendra Singh – 0141MBA013 (Students of MBA – 2nd Semester‚ Section – A‚ BVIMR) INTRODUCTION The Reserve Bank of India (RBI) is India’s central banking institution‚ which controls the monetary policy of the Indian rupee. It was established on 1 April 1935 during the British Raj in accordance with the
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The five different approaches to motivation The first being instincts which are the patterns of behavior that are biologically determined rather than learned. Fact: people and animals are born preprogrammed with sets of behavior’s essential to survive. The second being the drive-reduction approach. It suggests that a lack of some basic biological requirement such as water produces the drive to obtain the water. The third being the arousal approach in which each person tries to maintain a
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simply‚ the repo rate is simply the annualised interest rate at which banks borrow money from the Reserve Bank of India (RBI) over a short term. This is generally seen as a way of tiding over a short-term liquidity crunch that is experienced by banks. However‚ to understand how this works‚ we need to understand the word repo. Repo technically stands for the word repurchase agreement. Most banks generally have a certain amount of government bonds or securities in their possession. When banks
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one of the most important aspects within business ethics. The object of a business is to produce products that consumers have faith in and have confidence that they are getting the best deal with no hidden inconveniences. The Markkula article gives five examples of ethical decision that each business should take into consideration when making transactions with customers or implementing a product into the market. The utilitarian approach‚ virtue approach‚ rights approach‚ fairness approach‚ and common
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Art Gonzalez Weekly Assignment 4: Developing Transnational Strategies 1 Compare and contrast international‚ multinational‚ global and transnational strategies which are used by today ’s MNEs. In dealing with the environmental forces‚ global efficiency‚ flexibility and learning‚ to achieve success‚ worldwide operational managerial methods led to four management strategies known as international‚ multinational‚ global‚ and transnational (Bartlett & Beamish‚ 2014‚ p. 215). The following
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Plan financial management approaches Submission details Candidate’s name Phone no. Assessor’s name Phone no. Assessment site Assessment date/s Time/s The assessment task is due on the date specified by your assessor. Any variations to this arrangement must be approved in writing by your assessor. Submit this document with any required evidence attached. See specifications below for details. Performance objective The candidate will demonstrate the ability to plan financial
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