ele ted      s   23.11
          4. Indirect foreign investment                  4. MSF is linked to the net demand and
          5. Trade                                            time liabilities of the banks.
         Code:                                           Which of the above statements are correct?
         (a) 1,3 and 5                                   (a) 1, 2 and 3
         (b) 1, 2, 4 and 5                               (b) 2, 3 and 4
         (c) 3, 4 and 5                                  (c) 1, 3 and 4
                                                         (d) 1, 2, 3 and 4
         (d) 2, 4 and 5
                                                      5. RBI recently announced revised norms for
      3. Since 2016–17, a new methodology has been
                                                         Priority Sector Lending in India. Consider
         operationalised by the RBI, for the banks in    the following statement in the light of the
         India, to decide their lending rates—known      announcement.
         as the Marginal Cost of funds based Lending
                                                          1. Foreign banks’ PSL target has been
         Rate (MCLR). The new method aims for                 increased to 40 per cent at par with
         which of the following:select your answer            Indian banks irrespective of their
         using the code given below:                          number of branches.
          1. to improve transmission of policy rates      2. Food and Agro-processing and
              into the lending rates of banks                 overdrafts up to Rs. 50,000 in no-frill
          2. to improve transparency in the                   accounts have been included in it.
              methodology followed by banks for           3. Off-grid solar and other renewable
              determining interest rates                      energy solutions together with
          3. to ensure availability of bank loans             vocational education are now under
              at interest rates which are fair to the         the PSL.
              borrowers as well as the banks              4. MSE loans up to Rs. 2 crore have also
                                                              been added under the PSL lending of
          4. to help the banks to become more
                                                              the banks.
              competitive and enhance their long
              run value                                  Which of the above statements are
                                                         (a) 1, 2 and 3
         (a) 1 and 3
                                                         (b) 2, 3 and 4
         (b) 1, 2 and 4                                  (c) 1, 3 and 4
         (c) 1, 3 and 4                                  (d) 1, 2, 3 and 4
         (d) 1, 2, 3 and 4
                                                      6. Which of the following segments of money
      4. Consider the following statements regarding     is considered as the ‘Other’ deposits with
         the Marginal Standing Facility (MSF):           the RBI?
          1. MSF functions as the last resort for         1. Deposits of quasi-government bodies
              banks to borrow short-term funds.           2. Other financial institutions and
          2. MSF is on the line of the existing LAF           primary dealers
              and is part of it.                          3. Balance in the accounts of foreign
          3. Being a penal rate, MSF is a costlier            central banks and governments
              route than repo.                            4. Accounts of international agencies