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    Question

    In India, who sets the Marginal Standing Facility (MSF)

    rate? 
    A Ministry of Finance Correct Answer Incorrect Answer
    B Reserve Bank of India Correct Answer Incorrect Answer
    C Securities and Exchange Board of India Correct Answer Incorrect Answer
    D National Payments Corporation of India Correct Answer Incorrect Answer

    Solution

    The MSF rate is set by the Reserve Bank of India (RBI). It allows banks to borrow funds on an overnight basis in situations of acute liquidity shortages.

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