Solved UPSC CDS/OTA Question
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Q · RBI and Its PoliciesMedium · 45s
What is the purpose of the Marginal Standing Facility?
TopicRBI and Its Policies
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
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MSF allows banks to borrow overnight at rates above repo, typically as a last-resort option.
Final Answer: Option A - Allow banks to borrow at penal rates above repo