Economics · Monetary Policy of RBI
Consider the following statements regarding the Marginal Standing Facility (MSF): (a) MSF is on the lines of the existing LAF and is part of it. (b) MSF is a costlier borrowing route than Repo. (c) MSF functions as the last resort for Banks to borrow short-term funds. (d) MSF borrowing limits are linked to the Net Demand and Time Liabilities (NDTL) of the Banks. Choose the correct code from the options given below.
- 1(a), (b), (c) and (d)
- 2(a), (c) and (d)
- 3(a), (b) and (c)
- 4(b), (c) and (d)✓
Correct answer
(b), (c) and (d)
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