📝 One-liners · 66 cards
Misc
What is the primary function of the Reserve Bank of India as the monetary authority of India?
The RBI formulates and implements monetary policy to maintain price stability while keeping in mind the objective of growth, and regulates the supply of money and credit in the economy.
What is the 'External Commercial Borrowing' (ECB) framework and who regulates it in India?
ECB refers to loans raised by Indian entities from non-resident lenders in foreign currency; regulated by RBI under the Foreign Exchange Management Act (FEMA).
What does the term 'fiscal deficit' mean in the context of India's Union Budget?
Fiscal deficit is the difference between the government's total expenditure and its total receipts excluding borrowings; it indicates the extent to which the government needs to borrow to meet its expenditure.
What is the 'Liquidity Adjustment Facility' (LAF) and what are its key instruments?
LAF is an RBI monetary policy tool that allows banks to borrow or lend short-term funds; its key instruments are the Repo Rate (injection) and Reverse Repo Rate (absorption).
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