The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in the news, are used in relation to
Detailed Explanation:
Marginal Standing Facility (MSF) Rate is the rate at which banks borrow overnight funds from the Reserve Bank of India (RBI) against government securities when facing acute liquidity shortfalls.
Net Demand and Time Liabilities (NDTL) represents the aggregate of a bank's demand deposits (current and savings accounts) and time deposits (fixed deposits), used to calculate statutory requirements like CRR and SLR.
Question 11 of 17 Monetary Policy
Practice PYQ questions from this topic across all years
With reference to Indian economy, consider the following : Bank rate Open market...
If the interest rate is decreased in an economy, it will