Multiple choice

Reverse repo means

  1. injecting liquidity by the Central Bank of a country through purchase of government securities

  2. absorption of liquidity from the market by sale of government securities

  3. balancing liquidity with a view to enhance economic growth rate

  4. improving the position of availability of securities in the market

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Option 2 is correct.

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