Which securities serve as collateral in LAF repo operations?
AGovernment securities
BPrivate company shares
CGold ornament stock
DReal estate deeds
Answer & Solution
Correct answer: A. Government securities
Government of India securities are the collateral for both repo and reverse repo under LAF.
Keep practising Money Market
Browse all Money Market questions for CA Foundation, or explore more Business Economics topics.
Related questions
Eurodollar deposits are deposits in US dollars held where?Trading companies often buy bankers' acceptances to pay whom?Federal funds are usually lent on what basis?Accrual instruments are issued at face value and mature at what amount?How does a T-bill investor earn a return?Treasury bills (T-bills) are zero-coupon securities maturing in how long?What does a CD ladder strategy do?A longer CD term usually earns a higher rate, except when which condition applies?