Treasury Bills Market Treasury bill is a monetary policy instrument through which government raise funds for short period requirements and commercial banks invest their short period surpluses by buying these bills from government. Three types of treasury bills are important: 91 days Treasury … [Read more...]
Archives for July 2014
Money Markets and Capital Markets
Money Markets and Capital Markets Money Market: The money market which deals in short-term credit and other assets generally up to one year duration. The money market has organized and unorganized segments. The organized segment dominated by the banking sector and the NBFIs. The unorganized … [Read more...]
What is Bank Rate?
Meaning and Definition The bank rate is the interest rate the central bank charges while making a loan to a commercial bank. Thus, the bank rate is essentially the lending rate of the central bank. The central bank has the power to increase or reduce the bank rate. The central bank often controls … [Read more...]