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The mechanism through which the banks are allowed to borrow money through repurchase agreements are called a__________.
  • a)
    Marginal standing facility
  • b)
    Liquidity Adjustment facility
  • c)
    Treasury bills
  • d)
    Open Market operations
  • e)
    Market Stabilisation scheme
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
The mechanism through which the banks are allowed to borrow money thr...
Liquidity Adjustment Facility (LAF): is a monetary policy which allows banks to borrow money through repurchase agreements. – LAF consists of repo and reverse repo operations.
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