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Variable Reverse Repo Rate (VRRR)
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What is the primary objective of the Variable Reverse Repo Rate (VRRR)?
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A
To manage liquidity in the financial system
💡 Explanation:
The VRRR is primarily used by the RBI to manage the liquidity in the financial system. By adjusting the rate, the RBI can influence the amount of money available to banks and other financial institutions.