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    Question

    Which of the following is a window for the banks to

    borrow from RBI in an emergency when inter-bank liquidity dries up completely.
    A Repo Operations Correct Answer Incorrect Answer
    B Reverse Repo Operations Correct Answer Incorrect Answer
    C Marginal Standing Facility Correct Answer Incorrect Answer
    D Statutory Liquidity Reserve Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Marginal standing facility (MSF) is a window for banks to borrow from the Reserve Bank of India in an emergency when inter-bank liquidity dries up completely. The Marginal standing facility is a scheme launched by RBI while reforming the monetary policy in 2011-12.

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