Maharashtra State Service Pre 2026 PracticeHard
Q.Regarding the monetary policy tools used by the Reserve Bank of India (RBI), which of the following statements is/are correct? (a) Marginal Standing Facility (MSF) allows scheduled commercial banks to borrow money from the RBI overnight by pledging government securities. (b) The Repo rate is traditionally kept higher than the MSF rate to penalize excessive borrowing. (c) Under the Reverse Repo mechanism, commercial banks borrow money from the RBI at a discounted rate. Select the correct option:
a
(1) Only (a)
b
(2) Only (a) and (b)
c
(3) Only (b) and (c)
d
(4) All of the above
Correct Answer: Option A
The correct solution involves applying the fundamental concept to derive the final value step by step...