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      Question

      Which of the following is a monetary policy tool which

      allows banks to borrow money through repurchase agreements that is primerily used by the Reserve Bank of India?
      A Negotiated Dealing System Correct Answer Incorrect Answer
      B Real Time Gross Settlement Correct Answer Incorrect Answer
      C Liquidity adjustment facility Correct Answer Incorrect Answer
      D Reverse Repo Constituents Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Liquidity adjustment facility is a monetary policy tool which allows banks to borrow money through repurchase agreements that is primerily used by the Reserve Bank of India.

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