Q: Consider the following statements regarding instruments of monetary policy: 1. Standing deposit facility (SDF) rate was introduced in April 2022. 2. SDF rate replaced fixed reverse repo rate as the floor of the LAF corridor. Which of the statements given above is/are correct?
(a)1 only
(b)2 only
(c)Both 1 and 2
(d)Neither 1 nor 2
Correct Answer: (c)
The correct answer is (b) '2 only'. Among the 2 statements given, this option correctly identifies which statements are accurate regarding Banking & Financial Sector (Indian Economy).