The discount rate at which a central bank repurchases government securities from the commercial banks, depending

on the level of money supply it decides to maintain in the country's monetary system. To temporarily expand the
money supply, the central bank decreases repo rates (so that banks can swap their holdings of government securities
for cash). To contract the money supply it increases the repo rates. Alternatively, the central bank decides on a desired
level of money supply and lets the market determine the appropriate repo rate. Repo is short for repossession.

Repo rate is the rate at which banks borrow funds from the RBI to meet the gap between the
demand they are facing for money (loans) and how much they have on hand to lend.
If the RBI wants to make it more expensive for the banks to borrow money, it increases the repo
rate; similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo rate.
Reverse Repo Rate
This is the exact opposite of repo rate.
The rate at which RBI borrows money from the banks (or banks lend money to the RBI) is termed
the reverse repo rate. The RBI uses this tool when it feels there is too much money floating in the
banking system
If the reverse repo rate is increased, it means the RBI will borrow money from the bank and offer
them a lucrative rate of interest. As a result, banks would prefer to keep their money with the RBI
(which is absolutely risk free) instead of lending it out (this option comes with a certain amount of
risk)
Bank rate, also referred to as the discount rate in American English[1], is the rate of interest which
a central bank charges on the loans and advances to a commercial bank.
Whenever a bank has a shortage of funds they can typically borrow it from the central bank based on
the monetary policy of the country.
The borrowing is commonly done via repos where the repo rate is the rate at which the central bank
lends short-term money to the banks against securities. A reduction in the repo rate will help banks to
get money at a cheaper rate. When the repo rate increases borrowing from the central bank becomes
more expensive. It is more applicable when there is a liquidity crunch in the market.
The reverse repo rate is the rate at which the banks can park surplus funds with reserve bank, while
the repo rate is the rate at which the banks borrow from the central bank. It is mostly done when there
is surplus liquidity in the marke
A time deposit (also known as a certificate of deposit in the United States, a term deposit,
particularly in Canada, Australia and New Zealand; a bond in the United Kingdom; Fixed
Deposits in India and in some other countries) is a money deposit at a banking institution that cannot
be withdrawn for a certain "term" or period of time (unless a penalty is paid) [citation needed]. When the term
is over it can be withdrawn or it can be held for another term. Generally speaking, the longer the term
the better the yield on the money. In its strict sense, certificate deposit is different from that of time
deposit in terms of its negotiability: CDs are negotiable and can be rediscounted when the holder
needs some liquidity, while time deposits must be kept until maturity
A time deposit is an interest-bearing bank deposit that has a specified date of maturity.A deposit of
funds in a savings institution is made under an agreement stipulating that (a) the funds must be kept
on deposit for a stated period of time, or (b) the institution may require a minimum period of
notification before a withdrawal is made.
A sum of money paid by a person (called the depositor) to another person on condition that the depositor may
call for repayment of an equal sum of money (but not the same notes or coins) either on demand or at a time or
in circumstances settled by agreement between the depositor and the person receiving the deposit. A deposit

repayable on demand is called a demand deposit. The person receiving the deposit may offer to pay interest on
it or may offer to provide banking services. In many instances of making deposits (e.g. in making a deposit in a
current account at a bank) the depositor is entitled to call for repayment of any sum of money less than the sum
deposited. In other instances (e.g. a deposit in exchange for a certificate of deposit) only the entire amount
deposited may be repaid. If banking services are provided then the deposited money may be paid to any person
to whom the depositor gives a right to payment (e.g. by issuing a cheque). 2. To pay money as a deposit in sense
1. 3. A sum of money paid, as security for the performance of an obligation, on condition that it will be repaid if
the obligation is performed. 4. A sum of money paid by a person to reserve for that person goods or services
offered for sale and representing part of the purchase price of the goods or services.

27 August 2013 Current Affairs

Malala Yousafzai Wins International Childrens Peace Prize
On 27 August Pakistani school pupil and education activist Malala Yousafzai won the International
Childrens Peace Prize 2013. The International Childrens Peace Prize is an initiative of the
Amsterdem-based Dutch KidsRights Foundation. It was launched in the year 2005 by former Soviet
President Mikhail Gorbachev, when he chaired the Summit of Nobel Peace Laureates in Rome. Since
then, the prize has been awarded every year by a Nobel Peace Prize Laureate. The prize is
presented annually to an exceptional child, whose courageous or otherwise remarkable actions have
made a difference in countering problems, which affect children around the world.

Madonna Tops Forbes 2013 Highest-Paid Celebrities List

On 27 August According to Forbes 2013 list of highest-paid celebrities Madonna was the worlds
highest-earning celebrity in 2012-13.Madonna made $US125 million between June 2012 and June
2013.Veteran film director Steven Spielberg took second place in the list, while musical talent show
mogul Simon Cowell tied for third with Fifty Shades of Grey author EL James and disc jockey Howard
Stern.

Mandela Is The First Recipient Of Mahathir Award For Global Peace

On 27 August Former South African President Nelson Mandela was awarded the first Lifetime
Campaigner for Peace and Freedom of the Mahathir Award for Global Peace .Current South African
President Jacob Zuma received the award on behalf of Mandela, who is in a critical condition in a
hospital in Pretoria.The Mahathir Award for Global Peace is a peace award instituted by the Mahathir
Global Peace Foundation. The foundation was formed to contribute to worldwide peace
efforts.Mahathir bin Mohamad is a Malaysian politician who was the fourth Prime Minister of Malaysia.
He held the post for 22 years from 1981 to 2003, making him Malaysias longest serving Prime

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28 August 2013 Current Affairs

Brigalia Bam Awarded with Gandhi Peace Prize

On 28 August Brigalia Bam, former head of South Africas election body, received the prestigious
Mahatma Gandhi International Award for Peace and Reconciliation her commitment to
democracy.The award was created in 2003 to mark the centenary of a newspaper, Indian Opinion,
published in South Africa by Gandhi. It was created in memory of Mahatma Gandhi who began his
socio-political life in South Africa and struggled ceaselessly for justice and for peace and
reconciliation.

Indian-origin Cardiologist Named White House Fellow

On 28 August Dr Kapil Parakh, an Indian-origin cardiologist working in Washington area, is among a
dozen people chosen by the White House for its prestigious fellowship programme for 2013-14.Dr
Parakh is the director of heart failure at the Johns Hopkins Bayview Medical Centre and assistant
professor in the Departments of Medicine, Epidemiology, and Health Behaviour and Society.Dr
Parakh is the co-founder of Health for America, a non-profit that mobilises youth to improve the health
of communities through innovation while shaping the next generation of leaders.

Scientists Discovered New Element 115

An international team at the GSI research facility in Germany have confirmed the existence of a new
element with atomic number 115, verifying earlier measurements performed by research groups in
Russia. By bombarding a thin film of americium with calcium ions, the research team was able to
measure photons in connection with the new elements alpha decay. Certain energies of the photons
agreed with the expected energies for X-ray radiation, which is a fingerprint of a given element.The
scientists have not named it yet but for time being it will be referred as, Ununpentium

Read more: 28 August 2013 Current Affairs http://currentaffairs.freejobalert.com/28-august-2013current-affairs/5339/#ixzz2dTDbRejR

26 August 2013 Current Affairs

Lok Sabha Passed National Food Security Bill, 2013
On 26 August Lok Sabha passed the National Food Security Bill, 2013.The Bill seeks to give legal
rights to get subsidized grains every month to 67 percent of the overall population (of which 75
percent is rural and 50 percent is urban population).A beneficiary will be entitled to 5 kg of rice, wheat
or coarse cereals at Rs. 3, Rs. 2 and Re. 1 per kg a month, respectively.The beneficiaries will be
identified by the States based on parameters prescribed by the Union government.Once the Bill gets
its nod in the Rajya Sabha and Presidents accent, India will join the selected league of countries that
guarantee food grants to a majority of its population.

Rajya Sabha Passed The Marriage Laws (Amendment) Bill, 2010

On 26 August the Rajya Sabha passed a bill to amend marriage laws to provide for irretrievable
breakdown of marriage as a ground for divorce, subject to certain safeguards to the wife and affected
children.The Marriage Laws (Amendment) Bill, 2010 was passed by voice vote. It seeks to amend the
Hindu Marriage Act 1955 and the Special Marriages Act, 1954.Under the new bill, a provision has
been made to restrict the grant of decree of divorce on the ground of irretrievable breakdown of

marriage if the court is satisfied that adequate provision for the maintenance of children born out of
the marriage has not been made consistently with the financial capacities of the parents.The bill
allows wife to oppose grant of divorce on the ground that a dissolution of marriage will result in grave
financial hardships. The court can also restrict grant of divorce if it is not satisfied about adequate
provision for maintenance of children born of marriage.

Read more: 26 August 2013 Current Affairs http://currentaffairs.freejobalert.com/26-august-2013current-affairs/5330/#ixzz2dTDjy3JS