Start learning →

What problem does the LAF help banks adjust?

ADaily liquidity mismatches
BAnnual income tax dues
CForeign exchange rates
DLong-term loan defaults
Answer & Solution
Correct answer: A. Daily liquidity mismatches
Banks use LAF for quick borrowing to cover short-term gaps in liquidity.
Practise this question with Quill — CA Foundation →

Keep practising Money Market

Browse all Money Market questions for CA Foundation, or explore more Business Economics topics.

Start a Money Market lesson →
Related questions