Glossary Terms

03

Nov'17

Central Bank Liquidity

Central bank liquidity comprises of currency notes and coins in the system.

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03

Nov'17

Liquidity Crisis

Liquidity crisis is a situation where banks and other financial institutions may face difficulty of having cash to meet their …

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03

Nov'17

Liquidity

Liquidity is having enough purchasing power/cash, given our needs. This is the liquidity from the angle of an individual or …

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03

Nov'17

Demand for Money

Demand for money is how much volume of money people demand to meet their transactions. The Fisher’s equation of exchange …

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03

Nov'17

Money Supply

Supply of money refers to the aggregate or total amount of currency and coin in circulation in the economy. The …

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03

Nov'17

Velocity of circulation of money

This concept shows the speed in which money is exchanged during a period of time. It is the number of …

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03

Nov'17

Money multiplier

In the financial system, banks can enhance money supply by expanding loans out of the deposits they receive. The deposit …

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03

Nov'17

Notice Money

In the call money market where most participants are banks who comes to settle their liquidity requirements, money is usually …

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03

Nov'17

Call Money Market

CMM is the market for very short-term loans most probably – one-day loans traded by banks. Borrowers and lenders in …

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03

Nov'17

Monetary Policy Committee

The Monetary Policy Committee (MPC) is the body of the RBI, headed by the Governor, responsible for taking the important …

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