BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What does the letter ‘L’ denote in the term ‘LAF’ as referred to every now and then in relation to the monetary policy of the RBI?
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Liquidity
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Liability
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Leveraged
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Longitudinal
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Explanation:
Detailed explanation-1: -A liquidity adjustment facility (LAF) is a tool used in monetary policy, primarily by the Reserve Bank of India (RBI) that allows banks to borrow money through repurchase agreements (repos) or to make loans to the RBI through reverse repo agreements.
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