Multiple choice

The Reserve Rank of India has decided to help banks, as a temporary measure, by providing additional liquidity support under IAF. What is the full form of LAF?

  1. Loan Adjustment Fund

  2. Liquidity Adjustment Facility

  3. Long Awaited Funds

  4. Loan Against Funds

  5. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

LAF stands for Liquidity Adjustment Facility, which the Reserve Bank of India uses to manage liquidity in the banking system by injecting or absorbing funds through repo and reverse repo operations. The question contains typos ('Reserve Rank' should be 'Reserve Bank', 'IAF' should be 'LAF'). Other options are incorrect or made-up.