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Today's Quiz

Next
Saturday, 06 June 2026
  • Consider the following statements regarding the liquidity management tools used by the Reserve Bank of India (RBI):
    1.The Repo Rate is the interest rate at which the RBI provides short-term liquidity to commercial banks against the collateral of government securities.
    2.The Standing Deposit Facility (SDF) allows the RBI to absorb excess liquidity from the banking system without needing to provide government securities as collateral in return.
    3.An increase in the Reverse Repo Rate generally decreases the money supply in the economy by encouraging commercial banks to park their surplus funds with the RBI.
    Which of the statements given above is/are correct?

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