Multiple choice

What is the significance of Liquidity Adjustment Fund?

  1. To ensure smooth transactions

  2. To keep pace with technology upgradation

  3. To know about the difference of total receipts and total expenditure

  4. Both (1) and (2)

  5. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Yes, this is the correct option. LAF ensures smoother transactions by adding some amount in the system and also drawing the excess money from the banks in order to meet the security purposes.

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