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The Central Bank & Monetary Policy · Question 23 of 58

Question 23

MediumOriginal question

The RBI's repo and reverse repo operations together form its

Options for question 23

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. Through the Liquidity Adjustment Facility, the RBI lends to banks (repo) or absorbs their surplus funds (reverse repo) day to day.

Concept
Liquidity Adjustment Facility
Typical time
70 s
Your time
—
The rule this testsRepo, reverse repo and bank rate
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Ten questions from The Central Bank & Monetary Policy, at your own pace.

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Ten questions from The Central Bank & Monetary Policy, at your own pace.

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