About this document
Understanding Bond Mathematics by nitesh chhutani is a document available to read on EtoBox.
Repo and reverse repo are instruments used by the RBI to conduct open market operations where it buys or sells government securities from commercial banks to absorb or inject liquidity into the banking system. In a repo transaction the RBI sells government securities to banks with an agreement to repurchase them at a future date, while in a reverse repo the RBI buys government securities from banks with an agreement to resell them.
- Author
- nitesh chhutani
- Language
- EN