Management Aptitude Test Feb 2012 Paper

(3) RBI can control the liquidity in the market by all the three given instruments
of RBI refers to the sell and purchase government bonds to financial institutions, when the RBI sells government securities, the flow of money in the market decreases.
is the rate at which Commercial Banks borrows from RBI. Reverse Repo Rate is the rate at which RBI borrow-,money from Commercial Banks.