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banking terms

  ✍️ CRR Cash Reserve Ratio is the minimum fraction of total deposits of a bank’s customers that banks have to hold as reserves with the central bank. ✍️ SLR Statutory Liquidity Ratio is the ratio of liquid assets to the net demand and time liabilities. ✍️ LAF Liquid Adjustment Facility is a tool to allow banks to borrow money through repurchase agreements. It consists of repo and reverse repo operations. ✍️ MSF Marginal Standing Facility allows scheduled banks to borrow funds overnight from RBI against approved government securities. ✍️ MSS Market Stabilization Scheme is a monetary policy intervention by RBI to withdraw excess liquidity by selling government securities in the economy. ✍️ OMO Open Market Operations refers to the buying and selling of government securities in the open market so as to expand or contract the amount of money in the banking system. ✍️ REPO Repo...

GreenHouse Gases

What are greenhouse gases?
 A greenhouse gas is a gaseous compound present in the atmosphere that is able to trap heat.
Greenhouse gases are gases that contribute to the greenhouse effect. This is the name for the warming of the earth when certain gases trap the sun’s rays in the atmosphere.
Greenhouse gases are gases such as carbon dioxide (CO2), carbon monoxide, water-vapor, ozone, nitrous oxide, and sulfides, sulfurous compounds, CFC (chlorofluorocarbons), methane and some some substances found in aerosols.

Why are they called greenhouse gases?
These are called greenhouse gases because they trap heat within the earth’s atmosphere and cause the greenhouse effect.
Such gases absorb infrared radiation resulting in a surge in earth’s temperature. The greenhouse effect is the name for the warming up of the earth due to changes in its atmosphere.

Are greenhouse gases harmful? Greenhouse gases lead to environmental pollution and global warming. This is all part of the wide phenomenon of climate change. Such gases are harmful gases in the atmosphere. The adverse effects that they have on climate and the planet in general includes, rising sea levels, melting ice caps and climate change.
A greenhouse gas gives out radiation within the range of thermal infrared. The common term for infrared energy is heat, and thus the warming effect.
The greenhouse effect must be combated by using less greenhouse gases as it poses a substantial threat to the survival of all species on earth including humans.

Where do greenhouse gases come from?
 The main source of greenhouse gases is fossil fuel combustion. A large amount of the harmful levels of greenhouse gases in our atmosphere come from human industrial activity. This is demonstrated by the levels of these gases in the atmosphere increased drastically during and after the Industrial Revolution in the 1900s.

Causes: Key causes of greenhouse gases include burning fossil fuels (which produces CO2 and other chemicals), agriculture (nitrous oxide is released when fertilizers are sprayed onto crops and the use of coolants and refrigerants (which contain high levels of CFCs).

Solution: The reduction of the emission of greenhouse gases can be achieved by:
  1. Burn fewer fossil fuels.
  2. Using clean and green energy.
  3. Driving fuel-efficient vehicles.
  4. Planting trees.
  5. Using environment-friendly farming methods.
Conclusion: Greenhouse gas is the primary cause of global warming and reducing its emission into the atmosphere can curb climate change and create a better planet. We must all do our bit to stop pumping greenhouse gases into the atmosphere.

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