RBI uses the policy instrument Reverse Repo for which of the following reasons?

  1. To increase the liquidity of commercial banks
  2. To absorb liquidity from commercial banks
  3. To reduce the fiscal deficit of central Government

Choose the correct option:

[A] 1 & 2
[B] 2 & 3
[C] 1, 2 & 3
[D] 1 & 3
Click Here to Display Answer