Question

    The Marginal Standing Facility (MSF) rate is linked to

    which of the following rates?
    A Reverse Repo Rate Correct Answer Incorrect Answer
    B Cash Reserve Ratio (CRR) Correct Answer Incorrect Answer
    C Bank Rate Correct Answer Incorrect Answer
    D Repo Rate Correct Answer Incorrect Answer
    E Statutory Liquidity Ratio (SLR) Correct Answer Incorrect Answer

    Solution

    The Marginal Standing Facility (MSF) rate is linked to the Repo Rate. It is typically 25 basis points higher than the Repo Rate and allows banks to borrow funds overnight from the RBI against government securities.

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