22.32       ndian    onom
                                                         and enhancing the efficiency of Government
        mArginAl stAnDing fAcility (msf)                 schemes has been suggested by a Planning
     Operationalised on the lines of the existing        Commission Working Group in the context of
     Liquidity Adjustment Facility (LAF – Repo) in       the Eleventh Five Year Plan. The Smart Card
     May 2011 under which all Scheduled Commercial       (i.e., MASCs) has been recognised to be useful in
     Banks can avail overnight funds, up to one per      implementation of various Central government
     cent of their Net Demand and Time Liabilities       schemes like, PDS, Indira Awas Yojana and
     (NDTL) outstanding at the end of the second         National Rural Employment Guarantee Scheme
     preceding fortnight. The facility is availed at an  (NREGS).
     interest which is 100 basis points above the LAF          Based on a web-enabled information system
     repo rate, or as decided by the Reserve Bank from   the Smart Cards will be based on unique ID,
     time to time.                                       sharing ID, multi-application and access control.
                                                         The whole system will consist of front, middle,
        mArginAl utility                                 and back end. The electronic card will be the
     The increase in satisfaction/utility a consumer     ‘front’ end of the system which will be the point
     derives from the use/consumption of one             of delivery where the smart cards will be read and
     additional unit of a product in a particular time   used. The office at ‘middle’ will be responsible for
     period–it goes on decreasing, i.e., the diminishing changing and updating the card periodically (i.e.,
     marginal utility.                                   monthly, quarterly, annually) depending on the
                                                         type of information and requirement and transfer
        mArket cApitAlisAtion                            information from the front end to the back end
                                                         and vice versa. The office at ‘back’ end will contain
     A term of security market which shows the
                                                         the computerised records, guidelines, accounts
     market value of a company’s share—calculated by
                                                         and management information systems. The
     multiplying the current price of its share to the
                                                         complete digitisation of records will be required
     total number of shares issued by the company.
                                                         by this system.
        mArket mAker
                                                            mArshAll plAn
     An intermediary (may be an individual or a
     firm) in the secondary market who buys and sells    A programme of international aid named after
     securities/shares simultaneously quoting two-       General George Marshall (a US Secretary of State)
     way rates. For example, on the over the counter     under which North America contributed around
     Stock Exchange of India (OTCEI) only ‘market        1 per cent of its GDP in total (between 1948–
     markers’ are allowed to operate. The Discount and   52) to western Europe to rebuild the economies
     Finance House of India (SBI DFHI) is the chief      ravaged in Second World War.
     market maker in the ‘money market’ of India.
          A market maker plays a very vital role            menu cost
     by providing sustainability to liquidity in the
     secondary market.                                   The cost a firm bears in changing the prices of
                                                         its product—it includes retraining the sales staff,
        mAscs                                            reprinting of the new price list, labelling of goods,
                                                         and informing the customers about the price
     The Multi-Application Smart Cards (MASCs)           change. Higher menu costs discourage the firms
     system to facilitate simplification of procedures   going for frequent price changes.