Current Affairs · Monetary Policy Operations
Which of the following correctly represents a policy rate corridor arrangement under the Liquidity Adjustment Facility (LAF) framework of the Reserve Bank of India where Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) form the lower and upper bounds?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1SDF – 6.50%, Repo Rate – 6.75%, MSF – 7.00%
- 2Repo Rate – 6.25%, SDF – 6.50%, MSF – 6.75%
- 3SDF – 5.25%, Repo Rate – 5.50%, MSF – 5.75%✓
- 4Reverse Repo Rate – 6.25%, Repo Rate – 6.50%, MSF/SDF – 6.75%
Correct answer
SDF – 5.25%, Repo Rate – 5.50%, MSF – 5.75%
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