New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    __________ is a mechanism used by Reserve Bank of India

    provide to States, banking with it, to help them tide over temporary mismatches in the cash flow of their receipts and payments.
    A Repo Operations Correct Answer Incorrect Answer
    B LAF Correct Answer Incorrect Answer
    C Deficit Financing Correct Answer Incorrect Answer
    D Ways and means advances Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Ways and means advances is a mechanism used by Reserve Bank of India under its credit policy to provide to States, banking with it, to help them tide over temporary mismatches in the cash flow of their receipts and payments.

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