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Consider the following statements.
1. Repo rate is used to control cash flow in the market.
2. Reverse repo rate is used to regulate liquidity in the economy.
3. Marginal Standing Facility was introduced as a provision for banks to avail fortnight funds.
Which of the above statement(s) is/ are not correct?
  • a)
    1 and 2 only
  • b)
    2 and 3 only
  • c)
    3 only
  • d)
    1,2 and 3
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Consider the following statements.1. Repo rate is used to control cash...
In News: Monetary Policy Committee (MPC) of RBI has kept Repo Rate unchanged at 4% for the seventh time in a row.
Statements 1 and 2 are incorrect. While repo rate is used to regulate liquidity in the economy, reverse repo rate is used to control cash flow in the market. Please note that the order has been reversed.
Statement 3 is incorrect. Marginal Standing Facility was introduced as a provision for banks to avail overnight (1 day) funds, not fortnight (14 days) funds.
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Consider the following statements.1. Repo rate is used to control cash flow in the market.2. Reverse repo rate is used to regulate liquidity in the economy.3. Marginal Standing Facility was introduced as a provision for banks to avail fortnight funds.Which of the above statement(s) is/ are not correct?a)1 and 2 onlyb)2 and 3 onlyc)3 onlyd)1,2 and 3Correct answer is option 'D'. Can you explain this answer?
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Consider the following statements.1. Repo rate is used to control cash flow in the market.2. Reverse repo rate is used to regulate liquidity in the economy.3. Marginal Standing Facility was introduced as a provision for banks to avail fortnight funds.Which of the above statement(s) is/ are not correct?a)1 and 2 onlyb)2 and 3 onlyc)3 onlyd)1,2 and 3Correct answer is option 'D'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about Consider the following statements.1. Repo rate is used to control cash flow in the market.2. Reverse repo rate is used to regulate liquidity in the economy.3. Marginal Standing Facility was introduced as a provision for banks to avail fortnight funds.Which of the above statement(s) is/ are not correct?a)1 and 2 onlyb)2 and 3 onlyc)3 onlyd)1,2 and 3Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1. Repo rate is used to control cash flow in the market.2. Reverse repo rate is used to regulate liquidity in the economy.3. Marginal Standing Facility was introduced as a provision for banks to avail fortnight funds.Which of the above statement(s) is/ are not correct?a)1 and 2 onlyb)2 and 3 onlyc)3 onlyd)1,2 and 3Correct answer is option 'D'. Can you explain this answer?.
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