Follow the statements :(a) Liquidity is injected into the system by reducing repo rate by the RBI.(b) Reverse repo rate helps the RBI to absorb liquidity from the system.Answer options :

• A. (a) is correct but (b) is incorrect
• B. (a) and (b) are correct
• C. (a) and (b) are incorrect
• D. (a) is incorrect but (b) is correct