WAYS AND MEANS ADVANCES (WMA) : - Under the RBI Act the Reserve Bank provides Ways and Means Advanced to the State Governments to help tide over the temporary mismatches in the cash flow of their receipts and payment. - While normal WMAs are clean advances, special WMAs are secured advances provided against the security of Government of India dated securities. - The normal WMAs are revised eve...

TREASURY BILLS : - These bills are the main instrument of short-term borrowing by the government and serve as convenient gilt edged security for the money market. - The Reserve Bank, as an agent of the government, sells treasury bills at a "discount". - The difference between the amount paid by the tenderer at the time of purchase (less than face value) and the amount received on maturity repr...

TIGHT MONEY POLICY : - Refers to the monetary policy of restraining or reducing the money supply and of raising interest rates. - This policy may have the effect of slowing the GDP growth, reduction the rate of inflation or raising the nation's foreign exchange rates....

TAX HAVEN : An offshore financial centre having legal mechanisms to reduce or eliminate taxes on income, wealth, profits and inheritance or to accumulate tax free income offshore pending repatriation to a taxable jurisdication....

STATUTORY LIQUIDITY RATIO (SLR) : - Is the amount a commercial bank needs to maintain in the form of cash, or gold or govt. approved securities (Bonds) before providing credit to its customers. - SLR rate is determined and maintained by the RBI (Reserve Bank of India) in order ot control the expansion of bank credit. - Generally this mandatory ration is complied by investing in Govt bonds. - U...