CRR:
It is the portion of total deposits of customers,which commercial banks have to kept with the central bank either in cash or as deposits.SLR:
It is the portion of deposits banks are required to maintain in the form of gold or government securities before providing credit to customers.Repo rate:
It is the rate at which the central bank lends money to banks.
Bank rate
The rate at which central bank lends money to commercial banks.Often these loan very short in duration.The only way the bank rate is different from repo rate is that in bank rate borrow money without sale of any securities.
SLR
It is the amount a commercial bank needs to maintain in the form of cash, or gold, or government securities before providing credit to customers.
MSF
The rate at which banks borrow funds overnight from RBI against approved government securities. Repo rate money can be kept by banks for quite some time but MSF can be utilized only overnight.
VOSTRO ACCOUNT
It is maintained by foreign bank in India with their corresponding bank.
NOSTRO ACCOUNT
It is maintained by Indian bank in foreign countries.DEAR MONEY
A situation in which money or loans are very difficult to obtain in a given country. If you do have the opportunity to secure a loan, then interest rates are usually extremely high. Also known as "tight money".
For example, if bank rates are 10% and inflation is 6%. The effective real interest rate is 4% which is quite high. According to the loanable funds theory, this would require a rate of return on investment to be at least 4% of higher, to make investment worthwhile.
FIAT MONEY
Fiat money is a legal tender for settling debts. It is a paper money that is not convertible and is declared by government to be legal tender for the settlement of all debts.
NEAR MONEY
Money consists of coins, currency notes and demand deposits of the banks. Near-money, on the other hand, includes the financial assets, like time-deposits, bills of exchange, bond, shares, etc.
REER
An index number that assesses the value of a country's currency by measuring it against the weighted average of other leading currencies. This index is regulated by the IMF who ensures quality by regularly updating the value of the various currencies within the index to reflect the true appreciation or depreciation of the home currency.
