CURRENCY BOARD : - Currency Board issues currency in accordance with certain strict rules; the Board prints domestic currency and commits itself to converting it on demand to a specified currency at fixed rate of exchange. - To make this commitment credible the board holds reserves of foreign currency (or of gold or some other liquid asset) equal to at least 100% of the domestic currency issue...

CERTIFICATE OF DEPOSIT : - It is a negotiable claim issued by a bank in return for a Term Deposit. - CDs are securities which are purchased for less than their face value, which is the bank's promise to repay the deposit and thus offer a yield to maturity (YTM). - The secondary market in CDs is made up by the Discount Houses and the banks in the Inter-Bank Market. Where a depositor knows that...

CASH RESERVE RATIO (CRR) : - Cash reserve Raio (CRR) is the amount of Cash (liquid cash like gold) that the banks have to keep with RBI. - This Ratio is basically to secure solvency of the bank and to drain out the excessive money from the banks. - If RBI decides to increase the percent of this, the available amount with the banks comes down and if RBI reduce the CRR then available amount with...

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse...

Financial Regulatory Bodies - Financial sector in India has experienced a better environment to grow with the presence of higher competition. - The financial system in India is regulated by independent regulators in the field of banking, insurance, mortgage and capital market. - Government of India plays a significant role in controlling the financial market in India. - Ministry of Finance,...