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Doctors Medicines MCQs Q&A

  1. The net balance of payment is positive
  2. The net fund borrowed from RBI is negative
  3. The net balance of payment is negative
  4. The net fund borrowed from RBI is positive
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Option 4 : The net fund borrowed from RBI is positive

Liquidity refers to the net fund (fund borrowed minus fund deposited with RBI) borrowed by banks and primary dealers under Liquidity adjustment facility. Liquidity shortage happens when net fund borrowed from RBI is positive.

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