alleryThe Liquidity Adjustment Facility is operated by way of:
ARepurchase agreements
BRepayment agreements
CReplacement agreements
DReporting agreements
Answer & Solution
Correct answer: A. Repurchase agreements
1. The tools are repos and reverse repos.
2. Securities move against cash and back again.
3. These are repurchase agreements.
_Source: RBI, FAQs on the Government Securities Market in India_
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