1.

Which among the following defines Marginal Standing Facility Rate?

A. The rate at which banks place their surplus funds with the RBI
B. The rate at which banks can borrow against their excess SLR securities to meet additional liquidity requirements
C. The rate at which the Reserve Bank is prepared to buy or re-discount bills of exchange or other commercial paper eligible for purchase
D. The rate at which banks borrow funds from the Reserve Bank against eligible collaterals
Answer» C. The rate at which the Reserve Bank is prepared to buy or re-discount bills of exchange or other commercial paper eligible for purchase


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