Question

What is the primary function of the Standing Deposit

Q: Answer-What is the primary function of the Standing Deposit Facility (SDF)?

The Standing Deposit Facility SDF allows the RBI to absorb excess liquidity from the banking system without requiring the banks to provide collateral. This is a tool used to manage liquidity in the economy.

Facility (SDF)?

A Provide liquidity to banks

B Absorb excess liquidity from banks without providing collateral

C Manage shortterm interest rates

D Control inflation by managing money supply

E Fund longterm infrastructure projects

Practice Next

More Monthly Quiz General Awareness Questions

[{(1296 ÷ 18) ÷ 12} ÷ 6] + 8² + √625 = ?
10% of 100 + 14 = ?% of 120
What will come in the place of question mark (?) in the given expression?

If 1.123 × 3.211 = 3.122 + ______________, then the number in blank space is
9 × 4 ^? ÷ 16 = 144
(60/15) × 25 + 15 ² – 18% of 200 = ? ²
(3984 ÷ 24) x (5862 ÷ 40) = ?
? = 6.25% of 240 + 25² + 17² – 16 × 17
5³ – 8 = ? + 126

Relevant for Exams:

RBI Grade B

NABARD GRADE A

Uiic AO Finance and Investment

What is the primary function of the Standing Deposit

Solution

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