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Which statement best explains Standing Deposit Facility?

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Question ID #27500 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC 2026 Full-Length Mock Test 9 Medium

Which statement best explains Standing Deposit Facility?

Correct Answer: B. RBI facility for absorbing liquidity without collateral
Standing Deposit Facility: RBI facility for absorbing liquidity without collateral

Question: Which statement best explains Standing Deposit Facility?

A. Part of external accounts recording capital transfers and financial flows

B. RBI facility for absorbing liquidity without collateral

C. GDP measured at current prices

D. Market value of final goods and services produced within a country during a given period

Correct Answer: B. RBI facility for absorbing liquidity without collateralStanding Deposit Facility: RBI facility for absorbing liquidity without collateral

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Which statement best explains Standing Deposit Facility? - MCQ Explanation

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Correct answer: B. RBI facility for absorbing liquidity without collateral