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Consider the following statements in regard to ‘Marginal Standing Facility (MSF)’ of RBI : 1. It will help in reducing volatility in the overnight lending rates in the inter-bank market. 2. The borrowing under the MSF should be over and above the statutory liquidity requirement. Which of the statements given above is/are correct?

Correct Answer: 1 only

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Economic MCQ: Consider the following statements in regard to ‘Marginal Standing Facility (MSF)’ of RBI : 1. It will help in reducing volatility in the overnight lending rates in the inter-bank market. 2. The borrowing under the MSF should be over and above the statutory liquidity requirement. Which of the statements given above is/are correct? | Extra Education