Repo rate is the interest rate at which the reserve bank of
India lends money to other banks.
Reverse repo rate is return banks earn on excess funds
parked with the central bank against Government securities.
CRR : The CASHreserve requirement (or required reserve ratio) is a bank regulation that sets the minimum reserves each bank must hold to customer deposits and notes. These reserves are designed to satisfy withdrawal demands, and would normally be in the form of fiat currency stored in a bank vault (vault cash), or with a central bank.
The reserve ratio is sometimes used as a tool in monetary policy, influencing the country's economy, borrowing, and interest rates.[2] Western central banks rarely alter the reserve requirements because it would cause immediate liquidity problems for banks with low excess reserves; they prefer to use open market operations to implement their monetary policy. The People's Bank of China does use changes in reserve requirements as an inflation-fighting tool,
REPO RATE : The repo rate is the relevant interest rate for many arbitrageurs operating in the futures market. It is derived from a repurchase agreement where securities owned by one party are sold to a second party at one price and then repurchased by the first party after a short period of time at a slightly higher price (the second party is essentially providing the first party with a loan). The difference in prices is the interest earned by the second party and the annualized rate of this amount is called the repo rate. The most common type of repo rate is the overnight repo rate where the rate is renegotiated every day. Longer-term agreements called term repos also exist. The repo rate is used for discounting purposes in the binomial method.
SLR : Statutory Liquidity Ratio (SLR) is a term used in the regulation of banking in India. It is the amount which a bank has to maintain in the form of cash, gold or approved securities. The quantum is specified as some percentage of the total demand and time liabilities ( i.e. the liabilities of the bank which are payable on demand anytime, and those liabilities which are accruing in one months time due to maturity) of a bank. This percentage is fixed by the Reserve Bank of India. The maximum and minimum limits for the SLR are 40% and 25% respectively.
how to Understanding cash flow ?
means for you to conduct a periodic check on your companys financial health. A projected cash flow statement estimates what the stream of money will be in coming months or years, based on a history a means for you to conduct a periodic check on your companys financial health. A projected cash flow statement estimates what the stream of money will be in coming months or years, based on a history
What is EBITDA
A metric used to show a companys profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become widely used in high as they would be without specific deductions taken from the total amount. The acronyms mean, respectively: earnings before interest, taxes, depreciation, and amortization, earnings before interest, taxes
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