Solved UPSC CDS/OTA Question
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Q · RBI and Its PoliciesMedium · 45s
RBI’s main instrument for short-term liquidity adjustment is:
TopicRBI and Its Policies
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
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The Liquidity Adjustment Facility (LAF) uses repo/reverse repo to adjust short-term liquidity.
Final Answer: Option D - Liquidity Adjustment Facility (LAF)