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Yogita Ingle 5 years, 11 months ago
LRR (Legal Reserve Ratio) refers to that legal minimum fraction of deposits which the banks are mandate to keep as cash with themselves. The LRR is fixed by the Central Bank. It has two components:
1. Cash Reserve Ratio
2. Statutory Liquidity Ratio
Cash Reserve Ratio (CRR):: It refers to the minimum amount of funds that a commercial bank has to maintain with the Reserve Bank of India, in the form of deposits. For example, suppose the total assets of a bank are worth Rs 200 crore and the minimum cash reserve ratio is 10%. Then the amount that the commercial bank has to maintain with RBI is Rs 20 crore. If this ratio rises to 20%, then the reserve with RBI increases to Rs 40 crore. Thus, less money will be left with the commercial bank for lending. This will eventually lead to considerable decrease in the money supply. On the contrary, a fall in CRR will lead to an increase in the money supply.
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Yogita Ingle 5 years, 11 months ago
The trade between two or more countries is known as Foreign trade. Foreign trade comprises of exports and imports. The inflow of goods in a country is called imports and the outflow of goods from a country is called export.
For example export of tea from India to US or import of car parts from Germany to India.
Foreign investment involves flow of capital and from one country to another country. Foreign investment comprises of Foreign Direct Investment and Foreign Portfolio Investment.
For example investment made by a MNC in another country is termed as foreign investment.
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THE SIMON COMMISSION : REPORTS & RECOMMENDATIONS
simon commission was constituted under the leadership of sir john simon to look into the functioning of the constitutional system in India and suggest changes. It was officially known as 'Indian statutory commission' and consists of four conservative,two labourties and one liberal member from the british parliament
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Aayush Kumar 5 years, 11 months ago
2Thank You