Tag: liquidity management

Test your understanding of the Variable Reverse Repo Rate (VRRR), a monetary policy tool used by the Reserve Bank of India (RBI) to manage liquidity in the Indian financial system.

Liquidity Adjustment Facility (LAF) is a monetary policy tool used by the Reserve Bank of India (RBI) to manage the liquidity in the Indian financial system. It involves the RBI buying or selling government securities in the open market to influence the supply of money and credit. This quiz will test your understanding of the concept of LAF and its various aspects.