Monetary policy bingo

Exercise and reference answers

Clues and terms

1. Clue

   RBI lends to banks under the LAF at this rate.

   Item

   Repo rate

2. Clue

   Overnight uncollateralised deposits with RBI.

   Item

   SDF

3. Clue

   Overnight penal borrowing by dipping into SLR.

   Item

   MSF

4. Clue

   Rediscount rate; penal for CRR and SLR shortfalls.

   Item

   Bank Rate

5. Clue

   Daily balance with RBI as a share of NDTL.

   Item

   CRR

6. Clue

   Assets held in G-secs, cash and gold.

   Item

   SLR

7. Clue

   Outright buying or selling of G-secs by RBI.

   Item

   OMO

8. Clue

   Six member body that sets the policy rate.

   Item

   MPC

9. Clue

   RBI department that assists the MPC.

   Item

   MPD

Instructions

Read each clue and tap the term it describes.

Explanation