A
Variable Rate Reverse Repo (VRRR)
B
Variable Rate Repo (VRR)
C
Export Credit Refinance facility
D
Standing Deposit Facility expansion for credit creation
Correct answer: (a) Variable Rate Reverse Repo (VRRR)
Explanation
Option A is correct because Variable Rate Reverse Repo (VRRR) auctions are deployed by the RBI to absorb excess liquidity from commercial banks. Option B injects liquidity rather than absorbing it. Options C and D serve different developmental or credit-support roles.
Same topic · past papers
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