
Consider the following statements regarding Liquidity Adjustment Facility:
1. LAF is a facility extended by the RBI to the scheduled commercial banks including RRBs and primary dealers to avail of liquidity in case of requirement.
2. The operations of LAF are conducted by way of Repo and Reverse Repo rates.
3. LAF is an important tool of monetary policy and enables RBI to transmit interest rate signals to the market.
Which of the statements given above is/are correct?


Important Questions on Practice Test
Which of the following is/are an example of derivative?
1. Forward
2. Future
3. Option
Select the correct answer from the code given below:


NABARD provides refinance to:
1. Commercial Banks
2. Regional Rural Bank (RRB)
3. State Cooperative Banks
4. Land development Bank
5. Non-Banking Financial Companies
Select the correct answer using the codes given below:

Which of the following is/are primarily a part of the Secondary market?
. Commercial Paper
. Options
. Treasury Bills
. Government Securities
Select the correct answer from the code given below:

Consider the following statements about Credit rating agencies in India:
1. CRISIL Ltd. is a rating agency in India.
2. Credit rating is a recommendation to buy, sell or hold a debt instrument.
3. The rating is assigned to a security or an instrument.
Which of the statements given above is/are true?


Which of the following statements relating to Indian Agriculture is/are correct?
1. India has the world's largest cropped area.
2. Cropping pattern is dominated by cereal crop.
3. The average size of an Indian farm holding is too small for several agricultural operations.
Select the correct answer using the code given below:

The financial market is classified into the money market and capital market. Which of these are money market instruments?
. T-Bills
. Preference shares
. Commercial papers
Select the correct answer using the codes given below:
