gs1easy

The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’ sometimes appearing in news, are used in relation to:

  1. A.Banking operations
  2. B.Communication networking
  3. C.Military strategies
  4. D.Supply and demand of agricultural products
▶ Answer & Explanation

Correct answer: A. Banking operations

The Marginal Standing Facility (MSF) is a monetary policy instrument used by the Reserve Bank of India (RBI) to control liquidity in the banking system. Net Demand and Time Liabilities (NDTL) is a crucial metric used to calculate reserve requirements like the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR), which directly influence the lending capacity of banks.

Source: UPSC gs1 2014

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