What are the impacts of reduction of Cash Reserves Ratio by RBI on the credit creation in the market?
To be an effective public speaker, one can adopt the following techniques like Creating original speech content : By creating a rich content based either on his/her experience or by a thorough research enabling the speaker to gain confidence and a complete mastery over his/her speech. Content shouldRead more
To be an effective public speaker, one can adopt the following techniques like
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- Creating original speech content : By creating a rich content based either on his/her experience or by a thorough research enabling the speaker to gain confidence and a complete mastery over his/her speech. Content should be created using simple sentences with attention to proper grammar.
- Presentation skills: The speaker should fine tune his oratory skills by focusing on
- Tonality – To emphasise words/ pronunciation/ tone modulation
- Body language– To show emotions using happy /sad face.
- Create / Follow style – They can watch and learn from leaders and speakers of their choice to improve their presentation when ever possible.
- Finally by maintaining eye contact with the audience.
- Overcoming shyness : The best way for a beginner is to practise his speech in front of the mirror. The speaker can also record his/her own speech using various audio visual tools available in the market to improve their performance.
- Practice, practice and more practice: The speaker must spend time to practise his speech using timer, can also write his speech for better memorisation and create short notes for a quick recap before delivering the speech.
- Feedback time: Finally the speaker can invite his family and friends for one last rendition before going on stage. The speaker must implement any suggested changes based on their feedback and reviews.
- Look good to feel good : The speaker must be neatly dressed for the event so as to be fully prepared to face his audience.
- WINNER Attitude : Finally the speaker should have a “WINNER” attitude this will help him to calm his nerves and recollect his content and wow the audience.
- Invite questions from audience: The speaker must at all times while delivering the speech should have a upbeat outlook, ready to handle any situation that arises and look to inspire and engage his audience through questions/ feedback.
- Enjoy your stage time: The speaker initially can expect to have stage fear but slowly create a mind set try to get involved in giving a rapturous speech leading to a mesmerising performance.
By following the above proven techniques, one can become a successful public speaker. The speaker must consistently work on his Content, English fluency and the ability to sway the audience to his thoughts/ideas. With time, experience and knowledge gathered both on and off stage one can bloom in to a highly successful public speaker.
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When the Reserve Bank of India (RBI) reduces the Cash Reserve Ratio (CRR), it impacts directly on the credit creation process in an economy. CRR is a certain percentage of a bank's total deposits that has to be maintained in form of cash with RBI. By reducing CRR, RBI can increase the amount availabRead more
When the Reserve Bank of India (RBI) reduces the Cash Reserve Ratio (CRR), it impacts directly on the credit creation process in an economy. CRR is a certain percentage of a bank’s total deposits that has to be maintained in form of cash with RBI. By reducing CRR, RBI can increase the amount available with banks for lending.
Here is the explanation:-
1.Increased Liquidity: As explained above, reduction in CRR leads to release of some part of [banks near-cash asset] as reserves and therefore permits banks to supply more credit.
See less2.Lower Borrowing Costs: When banks have access to more funds to lend, they may reduce interest rates on loans because they do not need to compete as aggressively for deposits as they would when their reserves are limited.
3.Boost to Economic Activity: With greater lending capacity at lower rates of interest, banks are able to assist not only new businesses† but also existing firms in expanding and generating additional employment and output. Consumers, too, are more likely to borrow in order to make purchases† thus contributing† to further spending.
4.Multiplier Effect: The additional lending leads to a multiplier effect in the economy – when banks lend more, it increases the deposits with banks by borrowers, which in turn increases the possibility of further lending, thus creating more credit on its own.
So, effectively, RBI reduces CRR to infuse liquidity in banking system, increase borrowings at lower cost and boost economic growth through increased credit creation.