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38 lessons,
5h 23m
Instruments of Monetary Policy and RBI Part 5
848 plays

3.3.3 Functions of RBI.

Mohini Jain
Gold medalist in Economics and graduate from St. Francis. Loves to read novels.

Unacademy user
if the data's and schemes linked with current one,it would be more useful.....
You said" Govt will sell the bonds to Central bank and in return bank will purchase the bonds and give money to Govt. This is Deficient Financing. But in OMO: Open Market operation , you said Central Govt will purchase the bonds from RBI. Could you please clarify ?
Mohini Jain
9 months ago
Manohar.. Basically.. OMO refers to buying and selling of government bonds.. OMO is method of deficit financing...

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  3. 1 o. B P CRR

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  5. Barter exchange Double coincidence of wants Money Medium of exchange Unit of account Store of value Transaction demand Speculative demand Bonds Present value Rate of interest Capital gain or loss Liquidity trap Fiat money

  6. Legal tender Narrow money Broad money Aggregate monetary resources Currency deposit ratio Reserve deposit ratio High powered money Money multiplier Lender of last resort Deficit financing through central bank borrowing Open market operation Bank Rate Cash Reserve Ratio (CRR) Statutory Liquidity Ratio (SLR) Sterilisation