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Reserve Bank of India

How Reserve Bank of India control money market?

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Who is the regulator of money market in India?

The Reserve Bank of India is the largest regulator of the Indian Money Market. The Reserve Bank of India regulates the money market by controlling how much money is put into the economy and to what industries they loan funds to. This type of direct control allows the banks to invest in companies that they believe will produce the most jobs and better circulate cash.


The Federal Reserve banks controls the money supply by what?

The Federal Reserve uses three tools to control the money supply. They are:Changes in the reserve requirements.Changes in the discount rate.Open market operations.


Was the Reserve Fund the first money market mutual fund?

The Reserve Fund was the first money market mutual fund


Major functions of Reserve bank of India?

How to send money from reserve bank of india to usa


Who regulates the money circulation in India?

Reserve Bank Of India


Does the federal reserve have complete control over money supply?

The federal reserve does not have complete control over money supply. The citizens also have control over the money that they manage.


What was the Reserve Fund?

The Reserve Fund was the first money market mutual fund


Who governed the Money Supply?

Reserve bank of India


What does the US Federal Reserve do?

Controls the US money supply through open market operations, adjustment of rates, and declaring a reserve ratio. See "Money Supply Theory." This control of the money supply by a privately owned entity is unconstitutional, therefore illegal.


Does the Federal Reserve have complete control over the money supply at all times?

does the federal reserve have complete control over the money supply at all times


Where are the Indian money made and printed?

reserve bank of india


What commission is governed money supply?

Reserve Bank of India


How does the government control the money supply?

The Government has no control over the money supply, only the loanable funds market. The only way the government can effect the economy is to change its spending, or change taxes. The Federal Reserve (not apart of the government) controls the money supply. It can buy/sell treasuries, raise/lower discount rate, as well as the reserve requirement in banks.


What can the Federal Reserve Bank of New York do to control short term interest rates?

To control short term interest rates, the Federal Reserve Bank of New York should establish a floor on money market rates while improving monetary policy.


What was the first money market mutual fund?

The first money market mutual fund (MMMF) was created in 1971 and called the Reserve Fund


When was the first money market mutual fund?

The first money market mutual fund (MMMF) was created in 1971 and called the Reserve Fund


Do you control your money when you declare bankruptcy?

The Federal Reserve controls the money in the United States. The Federal Reserve is a private company not associated with the government.


Who controls money in India with RBI?

who control money


What is current bank rate by rbi?

Answer :-It is the rate at with Reserve bank of India allows commercial bank to borrow money from the Reserve bank of India as per their eligibility for refinance.


What year was the first money market mutual fund?

The first money market mutual fund (MMMF) was created in 1971 and called the Reserve Fund


Which of these is primarily responsible for the control of the money supply in the US?

The Federal Reserve


How does the federal reserve control the money supply?

The federal reserve controls money supply by controlling what budgets do and don't get approved. They also decide who is allowed to receive extra money.


What are the three ways the Federal reserve can change the money supply?

The Federal Reserve can change the money supply with 1) open market operations, 2)making changes in the reserve ratio, and 3) making changes in the discount rate. Of the three policies the open market is the most common.


What are the characteristics of Indian money market?

Charecteristics of Indian Money Market1.Co-existence of organized and unorganized sectors:The peculiar feature of the Indian Money Market is the co-existence of organized and unorganized sectors. The organized sector consists of the Reserve Bank of India, State Bank of India and its affiliates, Commercial Banks, etc., The Reserve Bank of India supervises these banks. Indigenous bankers and others belong to unorganized sector and thissector is not coming under the purview of Reserve Bank of India. We can notice the lack of co-operation and co-ordination between these two sectors.2.Lack of Integration:Indian Money Market is divided into several segments. They are loosely connected to each other. The various segments of Indian Money Market are not well co-ordinated. It leads to unhealthy competition among the segments.3.High volatile money market:The important feature of the Indian Money Market is the seasonal stringency of funds. The demand for money in the Indian Money Market is of seasonal in character. The money rates fluctuate from one period to another because during busy season more money is demanded.4.Diversified money rates of interest:Diversified money rates of interest is an important feature of Indian Money Market. Since funds can not move freely from one section to another, money rates of interest differ. Lack of co-ordination among various segments of money market is also responsible for diversified money rates of interest. But in recent years Reserve Bank of India is making all efforts to bring down the diversity in interest rates.5.Absence of well organized bill market:Bill market in India is not organized and well developed. The market for government and semi government securities is also not popular. Treasury Bill Market is also not well developed.6.Lack of well organized banking system:Existence of organized commercial banking system is pre requisite of a developed money market. In India, the development of commercial banking is uneven and not adequate. There are only few big banks in the country which are extremely smaller in number.7.Limited availability of credit instruments:The Indian Money Market does not have adequate short term credit instruments. The important credit instruments are call money market and treasury bills. However after 1988, Reserve Bank of India started introducing new instruments like 182 days treasury bill, 364 days treasury bill, certificate of deposits, commercial papers etc.,8.Few Lenders:The lenders in the Indian Money Market are few. Entry into the money market is strictly regulated. But the borrowers are large in number. Therefore this market is not very active and vibrant.9.Easy flow of foreign funds:Since 1991 foreign funds is easily flowing into India. Inspite of the flow it is not enough to meet the funds requirements of the country.10.Shortage of capital:Indian Money Market is facing the problem of capital shortage. Hence it can not meet the requirements of trade and commerce. Shortage is mainly due to low level of savings, inadequate banking facilities etc.,


Why does the Federal Reserve Bank buy and sell bonds and securities?

This is called open market operations, they do this to increase the money supply, buy buying bonds or decrease the money supply by selling. They do this to control interest rates and inflation.


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