Social Sciences, asked by brightedu6892, 1 year ago

What is meant by Liquidity Adjustment Facility?

Answers

Answered by QueenOfKnowledge

Liquidity adjustment facility (LAF) is a monetary policy tool which allows banks to borrow money through repurchase agreements. LAF is used to aid banks in adjusting the day to day mismatches in liquidity. LAF consists of repo and reverse repo operations.

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