Which of the following is/are liquidity management tool/s of Reserve Bank of India? 1. Standing Deposit Facility (SDF) 2. Altering Repo and Reverse repo rates 3. Open market operations Select the correct answer from below given codes: |ForumIAS

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[A] Only one

[B] Only two

[C] Only three

[D] None

Answer: C

Notes:

Explanation: Liquidity Management Tools:

Standing Deposit Facility (SDF): SDF allows the RBI to absorb liquidity (deposit) from banks without giving government securities in return to the banks.
Altering Repo and Reverse repo rates: Altering these rates directly affects the deposit rate in banks as well as their lending rates.
Open Market Operation (OMO): OMO refers to the sale or purchase of government securities (bonds) by the RBI.
Ways and Means Advances (WMA): It is a temporary loan facility to the central and state governments.

Source: FORUMIAS