Consider the following statements in regard to 'Marginal Standing Facility (MSF)' of RBI :(1) It will help in reducing volatility in the overnight lending rates in the inter-bank market. (2) The borrowing under the MSF should be over and above the statutory liquidity requirement. Which of the statements given above is/are correct ?

Consider the following statements in regard to 'Marginal Standing Faci

1.	Consider the following statements in regard to 'Marginal Standing Facility (MSF)' of RBI :(1) It will help in reducing volatility in the overnight lending rates in the inter-bank market. (2) The borrowing under the MSF should be over and above the statutory liquidity requirement. Which of the statements given above is/are correct ?
A.	1 only
B.	2 only
C.	Both 1 and 2
D.	Neither 1 nor 2
Answer» B. 2 only

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