2014 · EconomyPrevious Year Question
Q11.
The terms 'Marginal Standing Facility Rate' and 'Net Demand and Time Liabilities', sometimes appearing in news, are used in relation to
A. banking operations
B. communications networking
C. military strategies
D. supply and demand of agricultural products
Answer

A

Explanation

MSF came into effect in 2011. MSF scheme is introduced by RBI by which the banks can borrow overnight up to 1 per cent of their net demand and time liabilities (NDTL) i.e. 1 per cent aggregate deposits and other liabilities of the banks.