Read the given passage and answer the following questions.

The Reserve Bank of India (RBI),established in 1935 and nationalized in 1949 plays a pivotal role in India’s financial system. Utilizing tools like the Cash Reserve Ratio (CRR), Repo Rate, Bank Rate, and Liquidity Adjustment Facility (LAF), it regulates the nation's monetary policy to maintain economic stability. CRR mandates that banks hold a certain percentage of deposits as reserves with the RBI. The Repo Rate is the cost at which banks borrow from the RBI by selling securities, crucial for controlling inflation. The Bank Rate, usually higher than the Repo Rate, is the interest rate for loans from the RBI without securities. LAF facilitates these operations by allowing temporary borrowing or lending between banks and the RBI.