The terms 'Marginal Standing Facility Rate' and 'Net Demand and Time Liabilities', sometimes appearing in news, are used in relation to
- (a) banking operations ✓ UPSC's answer
- (b) communication networking
- (c) military strategies
- (d) supply and demand of agricultural products
Why the answer is (a)
• The Marginal Standing Facility rate is the penal rate at which banks borrow overnight from the RBI against government securities beyond the repo window; Net Demand and Time Liabilities is the deposit base on which CRR and SLR are calculated.
• Both are RBI banking-regulation terms — option (a).
• Hence option (a).
Why the other options are wrong
- (b) communication networking
- These are not networking terms.
- (c) military strategies
- These are not military terms.
- (d) supply and demand of agricultural products
- These are not agricultural terms.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2014, held on 24 August 2014. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.