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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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