Economics · Economy
With reference to the Standing Deposit Facility (SDF) introduced by the RBI, consider the following statements: 1. SDF allows the RBI to absorb liquidity without providing collateral. 2. The SDF rate forms the upper bound of the Liquidity Adjustment Facility (LAF) corridor. 3. SDF replaced the Fixed Rate Reverse Repo as the floor of the policy corridor. Which of the statements given above is/are correct?
- 11 only
- 21 and 3 only✓
- 32 and 3 only
- 41, 2 and 3
Correct answer
1 and 3 only
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