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Your results are here!! for" Marginal Standing Facility (MSF) "
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Question 1 of 10
1. Question
In which year was the Marginal Standing Facility (MSF) introduced by the RBI?
Correct
The RBI introduced the Marginal Standing Facility (MSF) in May 2011.
Incorrect
The RBI introduced the Marginal Standing Facility (MSF) in May 2011.
Unattempted
The RBI introduced the Marginal Standing Facility (MSF) in May 2011.
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Question 2 of 10
2. Question
What is the primary purpose of the Marginal Standing Facility (MSF)?
Correct
MSF provides scheduled commercial banks with access to overnight funds when they face a shortage of liquidity.
Incorrect
MSF provides scheduled commercial banks with access to overnight funds when they face a shortage of liquidity.
Unattempted
MSF provides scheduled commercial banks with access to overnight funds when they face a shortage of liquidity.
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Question 3 of 10
3. Question
Which banks can access the Marginal Standing Facility according to the provided content?
Correct
The provided content states that all scheduled commercial banks are eligible to access MSF.
Incorrect
The provided content states that all scheduled commercial banks are eligible to access MSF.
Unattempted
The provided content states that all scheduled commercial banks are eligible to access MSF.
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Question 4 of 10
4. Question
What is the maximum amount that banks can borrow under MSF according to the provided content?
Correct
Banks can borrow up to 2.5% of their Net Demand and Time Liabilities (NDTL) under MSF.
Incorrect
Banks can borrow up to 2.5% of their Net Demand and Time Liabilities (NDTL) under MSF.
Unattempted
Banks can borrow up to 2.5% of their Net Demand and Time Liabilities (NDTL) under MSF.
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Question 5 of 10
5. Question
What is the minimum borrowing amount under MSF according to the provided content?
Correct
The minimum borrowing amount under MSF is ₹10 million, with subsequent borrowing in multiples of ₹10 million.
Incorrect
The minimum borrowing amount under MSF is ₹10 million, with subsequent borrowing in multiples of ₹10 million.
Unattempted
The minimum borrowing amount under MSF is ₹10 million, with subsequent borrowing in multiples of ₹10 million.
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Question 6 of 10
6. Question
Which securities can banks pledge as collateral under MSF?
Correct
Under MSF, banks pledge government securities from their Statutory Liquidity Ratio (SLR) quota.
Incorrect
Under MSF, banks pledge government securities from their Statutory Liquidity Ratio (SLR) quota.
Unattempted
Under MSF, banks pledge government securities from their Statutory Liquidity Ratio (SLR) quota.
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Question 7 of 10
7. Question
According to the provided content, what is the current MSF rate?
Correct
The provided content states that the current MSF rate is 4.25%, subject to change by the RBI.
Incorrect
The provided content states that the current MSF rate is 4.25%, subject to change by the RBI.
Unattempted
The provided content states that the current MSF rate is 4.25%, subject to change by the RBI.
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Question 8 of 10
8. Question
How does the MSF rate compare with the repo rate according to the provided content?
Correct
The provided content states that the MSF rate is higher than the repo rate.
Incorrect
The provided content states that the MSF rate is higher than the repo rate.
Unattempted
The provided content states that the MSF rate is higher than the repo rate.
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Question 9 of 10
9. Question
Why do banks use MSF mainly in urgent situations?
Correct
MSF is used mainly in urgent situations because borrowing under MSF is costlier than borrowing through the repo rate.
Incorrect
MSF is used mainly in urgent situations because borrowing under MSF is costlier than borrowing through the repo rate.
Unattempted
MSF is used mainly in urgent situations because borrowing under MSF is costlier than borrowing through the repo rate.
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Question 10 of 10
10. Question
What is a special feature of MSF regarding SLR securities according to the provided content?
Correct
The provided content states that banks can use government securities from their SLR quota under MSF, even if this causes SLR to fall below the minimum requirement without a penalty.
Incorrect
The provided content states that banks can use government securities from their SLR quota under MSF, even if this causes SLR to fall below the minimum requirement without a penalty.
Unattempted
The provided content states that banks can use government securities from their SLR quota under MSF, even if this causes SLR to fall below the minimum requirement without a penalty.