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    Question

    MSF enables banks to borrow funds from Reserve Bank of

    India (RBI) in emergency situations when their liquidity absolutely dries up. Here, MSF stands for _______.
    A Maximum Standing Facility Correct Answer Incorrect Answer
    B Marginal Standing Facility Correct Answer Incorrect Answer
    C Money Standing Facility Correct Answer Incorrect Answer
    D Mutual Systematic Facility Correct Answer Incorrect Answer

    Solution

    Marginal Standing Facility (MSF)  enables banks to borrow funds from Reserve Bank of India (RBI) in emergency situations when their liquidity absolutely dries up.

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