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BANKING AND MONETARY POLICY — Economics STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsBANKING AND MONETARY POLICY1 Mark
Question
What is Marginal Standing Facility $(MSF)?$
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Answer

Banks borrow money from $RBI$ against approved government securities in an emergency situation like an acute cash shortage. This is called Marginal Standing Facility $(MSF).$

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