What is a Contractionary Policy?

Contractionary Policy refers to the monetary policy which aims to slow down the economy by introducing a reduction in money supply for lesser money and investment. There are many economic tools used by the Central Bank of every nation like CRR, SLR, Repo, Reverse Repo, Interest Rate etc. to keep a check on the volume

What is the meaning of Capital Adequacy Ratio?

Capital Adequacy Ratio is also known capital-to-risk weighted assets ratio is used for the protection of depositors and promotion of stability of financial systems across the world. It is a measure of the capital of the bank which is expressed as a percentage of bank’s risk-weighted credit exposures. The ratio is usually decided by the

What is Bank Rate?

Bank Rate is defined as the rate at which Central Bank gives loans to other domestic banks like commercial banks, cooperative banks, development banks etc. The loans are generally given on a short-term basis. It is the way the Central Bank manages the economic activity in the country. The Bank Rate, in turn, goes to