Reserve Bank's Liquidity Adjustment Facility (LAF) refers to:

Auction of Treasury Bills

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Rediscounting of Bills of Exchange

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Use of Repos and Reverse Repos

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Variation in the Statutory Liquidity Ratio (SLR)

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Solution

The correct option is C
Use of Repos and Reverse Repos

Option : (C)

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Similar questions

Q. Consider the following statements with reference to ‘Liquidity Adjustment Facility (LAF)’ of the Reserve Bank of India (RBI):

Which of the statements given above is/are correct?

Q. भारतीय रिजर्व बैंक (RBI) की 'तरलता समायोजन सुविधा (LAF)' के संदर्भ में निम्नलिखित कथनों पर विचार कीजिए:

उपर्युक्त कथनों में से कौन सा/से सही है/हैं ?

Q22. Consider the following statements about Liquidity Adjustment Facility:

1. This arrangement allows banks to respond to liquidity pressures.

2. LAF includes only reverse repo agreements.

Which of the above statements are correct?

What is the current Policy Repo Rate under the liquidity adjustment facility (LAF)?

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