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KPSC KAS 2017 · Question 59 of 200

Consider the following measures : A. Repo Rate B. Cash Reserve Ratio (CRR) C. Reverse Repo Rate Which of the above given measures is/are used in Liquidity Adjustment Facility (LAF) ? Select the code for the correct answer from the options given below :

Indian Economy

  1. AA and B only
  2. BB and C only
  3. CA and C onlyCorrect
  4. DA only

Answer: C. A and C only

Explanation

The Liquidity Adjustment Facility operates through the repo rate and the reverse repo rate; the Cash Reserve Ratio is not an LAF instrument — A and C are correct.

Source: KPSC Gazetted Probationers Prelims 2017, Paper-I (General Studies, subject code 261), Series A

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