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      Question

      The 'Liquidity Adjustment Facility' (LAF) used by the

      RBI consists of:
      A Repo and Reverse Repo Correct Answer Incorrect Answer
      B SLR and CRR Correct Answer Incorrect Answer
      C Call Money and Notice Money Correct Answer Incorrect Answer
      D CP and CD Correct Answer Incorrect Answer
      E Treasury Bills and Dated Securities Correct Answer Incorrect Answer

      Solution

      LAF is a tool that allows banks to borrow money through repurchase agreements (repos) or make loans to the RBI via reverse repos to manage liquidity.

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