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UPSC CSE Prelims Discriminating Confusable Entities — Economics (Core) Flashcards

Master 14 discriminating confusable entities — economics (core) concepts for the UPSC CSE Prelims.

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Question

Select the correct relationships for the RBI's policy rates.


Under the Liquidity Adjustment Facility, the is the rate at which the RBI lends short-term money to commercial banks, whereas the is the rate at which the RBI borrows money from them.

Question

Differentiate between Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).


Banks must maintain a portion of their Net Demand and Time Liabilities (NDTL). is kept exclusively as cash with the , while is maintained with the bank itself in specified liquid assets like gold or government securities.

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