THE EXAMS POINTMonetary tools: distinguish their roles
Begin at the centre. Explore a branch, explain its connection, then test your recall. Tap any branch heading to fold or expand it.
In recall mode, focus or tap a branch to reveal its explanation. Branches group related ideas; they do not imply a chronological sequence.
Monetary tools: distinguish their roles
01 · Policy repo rate
An important policy rate for eligible collateralised liquidity operations.
02 · CRR
A prescribed cash reserve requirement maintained with the central bank.
03 · SLR
A statutory liquidity requirement maintained in specified eligible assets.
04 · Open-market operations
Purchases or sales of government securities affect durable system liquidity.
05 · Transmission
Policy changes can affect money-market rates, bank funding, lending and demand with lags.
Connect the branches
This is a conceptual map, not a list of current policy rates. Check RBI releases for live rates and operational rules.
Avoid the exam trap
CRR and SLR are different requirements; neither is simply a bank lending rate.
Test yourself: Which tool involves buying or selling government securities?
Open-market operations.
A concise revision aid with simplified connections. It supports the full chapter and primary references; it does not replace them.