📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    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

    Not sure which exam is best for you Talk to our expert

    Get My Free Call