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Question

The terms 'Marginal Standing Facility Rate' and 'Net Demand and Time Liablities', sometimes appearing in news, are used in relation to _________________.

A
banking operation
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B
communication networking
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C
military Strategies
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D
supply and demand of agricultural products
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Solution

The correct option is A banking operation
Marginal Standing Facility is a ruote created by the RBI (came in May 2011) under which banks can barrow maximum 1 per cent (fixed by the RBI) of their Net Demand and Time Liabilities (NDTL) from the RBI for one night. This works as an alternate ruote to the Repo but is costlier to it.

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