Question
The terms āMarginal Standing Facility Rateā and
āNet Demand and Time Liabilitiesā, sometimes appearing in news, are used in relation to?Solution
Marginal Standing Facility rate is the rate at which banks borrow funds overnight from the Reserve Bank of India (RBI) against approved government securities. Net Demand and time liability is the sum of demand and time liability of Banks with public and other banks wherein assets with other banks is subtracted to get net liability of other bank.
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