Answer Posted / dayasagar s
A repo agreement is the sale of a security with a commitment to
repurchase the same security as a specified price and on specified
date while a reverse repo is purchase of security with a commitment
to sell at predetermined price and date. A repo transaction
for party would mean reverse repo for the second party. In liew
of the loan, the borrower pays a contracted rate to the lender,
which is called the repo rate. As against the call money market
where the lending is totally unsecured, the lending in the repo is
backed by a simultaneous transfer of securities. The main
players in this market are all institutional players like banks,
primary dealers like PNB Gilts Limited, financial institutions,
mutual funds, insurance companies etc. allowed to operate a
SGL with the Reserve Bank of India.
Further RBI also operates daily repo/ reverse repo auctions to
provide a benchmark rates in the markets as well as managing in
the liquidity in the system. RBI sucks or injects liquidity in the
banking system by daily repo/ reverse operations.
| Is This Answer Correct ? | 3 Yes | 1 No |
Post New Answer View All Answers
does MIS reports are used in Tally n Focus software? if yes how it is used in focus software? for AR n AP
what are responsibilities of an accountant in a company?
Short Answer on _________Financial accounting
What is the content of purchase order? n content of voucher? what is the main use of voucher.
What is the accounting treatment for finance lease in lessee's viewpoint?
SOUTH ATLANTIC OIL AND GAS INC.is a fraud company
what are the seven accounting rules
Hi, Please post in here the Aptitude Test Questions given in companies like Thomson, Reuters, GMS, JP Morgan, Northern Trust Bank etc.
what is participation right is it a debt? or not?
What is the journal entry for Call and a Put option both in the books of buyer and seller
Placed an order with Mani for supply of goods worth Rs.5000/-. state whether the the following transcation is business transcation or non business transcation? with reson or explaination?
differences between liabilities and assessts
can i have practical examples of AS-30
what is the meaning of (PDD’s, DOD’s, CFR’s,) based on understanding of the business process
sir i am working consruction company.we have 4 projects in varrious places.i enter attendance in payroll by project wise.if enter autofill salaries combained all projects.i want individual salaries base on attendance feeding method.because staff are changing in one project to another project offenly.please explain method