The Marginal Standing Facility allows banks to borrow overnight from RBI: MCQ with Answer and Explanation

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The Marginal Standing Facility allows banks to borrow overnight from RBI:

A. without any collateral

B. against approved government securities

C. against foreign currency

D. against corporate bonds

Answer: Option B

Solution (By JKSSB Mock Tests)

MSF allows banks to borrow overnight from the RBI against approved government securities.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'liquidity adjustment facility' was introduced in India based on the recommendations of:

A. Kelkar Committee

B. Narasimham Committee

C. Urjit Patel Committee

D. Rangarajan Committee

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Correct Answer: Option B

Explanation:
The Liquidity Adjustment Facility was introduced in 2000 based on Narasimham Committee recommendations.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Directorate General of Foreign Trade' is under which ministry?

A. Ministry of Finance

B. Ministry of External Affairs

C. Ministry of Commerce and Industry

D. Ministry of Home Affairs

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Correct Answer: Option C

Explanation:
DGFT operates under the Ministry of Commerce and Industry.

This question belongs to: Economy GK Economy Set 1

Question #3

Economic cost includes:

A. only explicit costs

B. both explicit and implicit costs

C. only accounting costs

D. only implicit costs

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Correct Answer: Option B

Explanation:
Economic cost includes both explicit costs and implicit opportunity costs.

This question belongs to: Economy GK Economy Set 1

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