GK economy :Banking Terms for IBPS Exam

NEAR MONEY: It is highly liquid asset that can easily be converted
into cash. Example: Savings account, Bank time deposits, bonds nearing
redemption date etc.

DEAR MONEY: A situation in which money or loans become difficult to
obtain in a given country.

CREDIT RATIONING: It refers to the situation where lenders limit the
supply of additional credit to borrowers who demand funds, even if the
latter are willing to pay higher interest rates. Example: Market
imperfection and Market failure

DEFICIT FINANCING: It is the amount by which a government, private
company, or individual's spending exceeds income over a particular
period of time, also called deficit, or budget deficit.

CREDIT CONTRACTION: Credit contractions are attempts to minimize or
limit the amount of credit that is currently available to
consumers.The use of a credit contraction is normally associated with
the desire to slow the rate of inflation in the general economy. By
creating a state of recession, credit contractions help to slow or
even possibly stop any growth of inflation for a period of time.

OPEN MARKET OPERATION: It is the buying and selling of government
bonds on the open market by a central bank. It is the primary means of
implementing monetary policy by a central bank.