LAF is used to inject or absorb liquidity into or from the banking system, helping to maintain the stability of the financial markets and guide short- term interest rates towards the policy rate.
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)?
Asked in KPSC KAS Prelims 2015 · Topic: Money & Banking (Monetary Policy: Objectives, Instruments (quantitative and qualitative), and Transmission Mechanism)
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