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What is the function of the Marginal Standing Facility (MSF) introduced by the RBI?
  • a)
    To absorb excess liquidity from the banking system
  • b)
    To provide short-term funds to banks against securities
  • c)
    To regulate the benchmark policy interest rate
  • d)
    To stimulate economic growth through credit expansion
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
What is the function of the Marginal Standing Facility (MSF) introduce...
The Marginal Standing Facility (MSF) introduced by the RBI provides a facility for banks to borrow short-term funds against securities. It serves as a mechanism for banks to meet their liquidity mismatches and obtain funds from the RBI. Banks can pledge government securities within the limits of the statutory liquidity ratio (SLR) to avail funds through the MSF. This facility helps in managing liquidity in the banking system and provides a source of short-term funds for banks.
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What is the function of the Marginal Standing Facility (MSF) introduced by the RBI?a)To absorb excess liquidity from the banking systemb)To provide short-term funds to banks against securitiesc)To regulate the benchmark policy interest rated)To stimulate economic growth through credit expansionCorrect answer is option 'B'. Can you explain this answer?
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What is the function of the Marginal Standing Facility (MSF) introduced by the RBI?a)To absorb excess liquidity from the banking systemb)To provide short-term funds to banks against securitiesc)To regulate the benchmark policy interest rated)To stimulate economic growth through credit expansionCorrect answer is option 'B'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the function of the Marginal Standing Facility (MSF) introduced by the RBI?a)To absorb excess liquidity from the banking systemb)To provide short-term funds to banks against securitiesc)To regulate the benchmark policy interest rated)To stimulate economic growth through credit expansionCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the function of the Marginal Standing Facility (MSF) introduced by the RBI?a)To absorb excess liquidity from the banking systemb)To provide short-term funds to banks against securitiesc)To regulate the benchmark policy interest rated)To stimulate economic growth through credit expansionCorrect answer is option 'B'. Can you explain this answer?.
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