alleryWhich rate forms the upper bound (ceiling) of the LAF corridor?
AReverse repo rate
BBank rate
CMSF rate
DBase rate
Answer & Solution
Correct answer: C. MSF rate
1. The question asks: Which rate forms the upper bound (ceiling) of the LAF corridor.
2. Correct answer: MSF rate.
3. The Marginal Standing Facility rate is the ceiling of the LAF corridor.
_Source: BOI Quick Revision — General Banking & Financial Awareness (2020), LAF corridor_
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