Which of the following initiatives was responsible for

Q: Answer-Which of the following initiatives was responsible for reducing volatility in daily reserve maintena...

The Automatic Sweep In Sweep Out ASISO facility introduced under the Flexible Inflation Targeting FIT framework allows banks to manage their cash reserve ratio CRR balances more flexibly, reducing volatility in daily reserve maintenance.

reducing volatility in daily reserve maintenance for banks?

A Automatic Sweep In Sweep Out (ASISO) facility Correct Answer Incorrect Answer

B Monetary Policy Framework Correct Answer Incorrect Answer

C Enhanced capital buffers Correct Answer Incorrect Answer

D Direct Credit Support (DCS) Correct Answer Incorrect Answer

E Liquidity Adjustment Facility (LAF) Correct Answer Incorrect Answer

Solution

The Automatic Sweep In Sweep Out (ASISO) facility introduced under the Flexible Inflation Targeting (FIT) framework allows banks to manage their cash reserve ratio (CRR) balances more flexibly, reducing volatility in daily reserve maintenance.

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