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      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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