Question

Which of the following is/are the difference between Repo and MSF?

I- MSF is used only in emergencies.

II- MSF Rate is usually higher than Repo Rate.

III- Banks can pledge government securities from the SLR quota up to 1% under the MSF.

Q: Which of the following is/are the difference between Repo and MSF? I- MSF is used only in emergencie

The difference between the MSF and the repo rate is that MSF is used only in emergencies. Another difference with the repo rate is that banks can pledge government securities from the SLR quota up to 1% under the MSF. Then, even if the SLR comes below 21.5%, banks need not pay any penalty under MSF.

A Only I

B Only II

C I & II

D II & III

E All of the above

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Question

Which of the following is/are the difference between Repo and MSF?

I- MSF is used only in emergencies.

II- MSF Rate is usually higher than Repo Rate.

III- Banks can pledge government securities from the SLR quota up to 1% under the MSF.

Solution

I Pledged to:

Question

Which of the following is/are the difference between Repo and MSF? I- MSF is used only in emergencies. II- MSF Rate is usually higher than Repo Rate. III- Banks can pledge government securities from the SLR quota up to 1% under the MSF.

Solution

I Pledged to:

Which of the following is/are the difference between Repo and MSF?

I- MSF is used only in emergencies.

II- MSF Rate is usually higher than Repo Rate.

III- Banks can pledge government securities from the SLR quota up to 1% under the MSF.