CORRECT OPTION is 1, i.e. All the alternatives are correct.LAF, MSF, Bank Rate are the INSTRUMENTS of RBI’s monetary policy.LAF- Liquidity ADJUSTMENT FACILITY allows banks to borrow money through repurchase agreements. Repo rate is an example of LAF.MSF- Marginal standing facility is a tool which lets banks to borrow money from the Reserve Bank of India.Bank rate is the rate charged by the central bank for lending funds to commercial banks. Higher bank rate will translate to higher lending rates by the banks.

"> CORRECT OPTION is 1, i.e. All the alternatives are correct.LAF, MSF, Bank Rate are the INSTRUMENTS of RBI’s monetary policy.LAF- Liquidity ADJUSTMENT FACILITY allows banks to borrow money through repurchase agreements. Repo rate is an example of LAF.MSF- Marginal standing facility is a tool which lets banks to borrow money from the Reserve Bank of India.Bank rate is the rate charged by the central bank for lending funds to commercial banks. Higher bank rate will translate to higher lending rates by the banks.

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Which of the following is/are an instrument of RBI’s monetary policy?I. LAFII. MSFIII. Bank Rate

General Knowledge General Awareness in General Knowledge . 6 months ago

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The CORRECT OPTION is 1, i.e. All the alternatives are correct.LAF, MSF, Bank Rate are the INSTRUMENTS of RBI’s monetary policy.LAF- Liquidity ADJUSTMENT FACILITY allows banks to borrow money through repurchase agreements. Repo rate is an example of LAF.MSF- Marginal standing facility is a tool which lets banks to borrow money from the Reserve Bank of India.Bank rate is the rate charged by the central bank for lending funds to commercial banks. Higher bank rate will translate to higher lending rates by the banks.

Posted on 02 Dec 2024, this text provides information on General Knowledge related to General Awareness in General Knowledge. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.

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