Which tool is used to absorb liquidity by RBI?

CA Foundation · Business Economics · MTP · January 2026
Which tool is used to absorb liquidity by RBI?
(A) A. Reverse Repo Rate
(B) B. Repo Rate
(C) C. Bank Rate
(D) D. CRR

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Reverse Repo Rate

Topics: Money Market

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