RBI provides financial accommodation to the commercial banks through repos/ reverse repos under:

CA Foundation · Business Economics · MTP · September 2024
RBI provides financial accommodation to the commercial banks through repos/ reverse repos under:
(A) A. Statutory Liquidity Ratio (SLR)
(B) B. Market stabilisation scheme (MSC)
(C) C. Liquidity adjustment facility (LAF)
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Liquidity adjustment facility (LAF)

Topics: Money Market

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