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The Liquidity Adjustment Facility operates on what basis?

AOvermonth
BOverweek
COvernight
DOveryear
Answer & Solution
Correct answer: C. Overnight
1. Banks may borrow or park funds under it. 2. It is collateralised by G-Secs including SDLs. 3. The facility works on an overnight basis. _Source: RBI, FAQs on the Government Securities Market in India_
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