OPEN MARKET OPERATION : - A monetary policy instrument which is used by the Reserve Bank mainly with a view to affect the reserve base of the banks and thereby the extent of monetary expansion. - It also, in the process, helps to create and maintain a desired pattern of yield on government securities and to assist the government in raising resources from the capital market. - Under the RBI Act...

NARASIMHAM COMMITTEE : - A Committee on Financial System under the chairmanship of M. Narasimham was set up by the Government of India to examine all aspects relating to the structure, organisation, functions and procedures of the financial system and make recommendations with a view to remove the rigidities and weaknesses of the financial system The Committees' recommendations made in Novermber...

INFLATION TARGETING : Inflation Targeting Targeting is a monetary policy framework with public announcement of official quantitative target or target ranges for the inflation rate nad explicit acknowledgement that low or stable inflation constitute the long run goal of monetary policy....

INFLATION MEASUREMENT : - Inflation rate forms part of important macro economic indicators used by policy makers particularly central bankers in policy formulation. - Inflation could be measured through three sets of price indices namely, the Whole price indices (WPI), implicit National Income Deflator and Consumer Price Indices (CPI). - The WPI is compiled for all commodities as well as major...

GILTS : - Term denotes Government securities like Central Government loans and State Government loans. - Include government guaranteed bonds like that of IDBI. - 'Gilts' is the short form for gilt-edged securities-so called because they carry no risk....