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    Question

    The terms ‘Marginal Standing Facility Rate’ and

    ‘Net Demand and Time Liabilities’, sometimes appearing in news, are used in relation to?
    A banking operations Correct Answer Incorrect Answer
    B communication networking Correct Answer Incorrect Answer
    C military strategies Correct Answer Incorrect Answer
    D supply and demand of agricultural products Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    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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