Economics · Monetary Policy (Repo Rate)
Which of the following is NOT true regarding Repo Operations?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Its purpose is to control the liquidity of financial institutions.
- 2Its purpose is to regulate the flow of credit.
- 3It increases the availability of foreign exchange.✓
- 4It is conducted by the central bank to manage liquidity.
Correct answer
It increases the availability of foreign exchange.
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