Question { 51032 }

what is the difference between repo rate and bank or
discount rate ?
and
as discount rate are determined by central bank is repo rate
is determined by MPC monitary policy comittee?

Answer

Repo Rate

Repo or Repurchase rate is the rate at which banks borrow
funds from the RBI to meet the gap between the demand they
are facing for money (loans) and how much they have on hand
to lend.

The main difference i8s that the Repo rate is charged on
short time. The time range is Few hours to 15 days


Bank Rate

This is the rate at which RBI lends money to other banks (or
financial institutions)

The bank rate signals the central bank's long-term outlook
on interest rates. If the bank rate moves up, long-term
interest rates also tend to move up, and vice-versa.

Question { 8243 }

What is the differrences between Life insurance, General
insurance, ULIP & Mutual funds?

Answer

Life Insurance

life insurance is taken as a protection against life.

General Insurance

general insurance is taken against any thing except life of
a person

ULIPS

unit link insurance policy: is an alloted units given
by the insurance companies and the NAV is declared on day to
Day basis


Mutul funds

it is a method of investing money where
individual come-together and invest money in such a way so
that the return is maximum