πŸ“’ Too many exams? Don’t know which one suits you best? Book Your Free Expert πŸ‘‰ call Now!

  • google app store apple app store
  • βœ–

      Question

      What facility allows for the daily infusion and

      absorption of liquidity by utilizing government securities as collateral?
      A Liquidity Adjustment Facility (LAF) Correct Answer Incorrect Answer
      B Marginal Standing Facility Correct Answer Incorrect Answer
      C Reverse Repo Rate Correct Answer Incorrect Answer
      D Repo Rate Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      LAF consists of daily infusion or absorption of liquidity on a purchase basis, through Repo and Reverse Repo rates basis respectively.

      Practice Next
      ask-question