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Match List-I with List-II :
List-IList-II
(A) Bank Rate(I) Securities are pledged in order to repurchase
(B) Marginal Standing Facility(II) Minimum rate at which funds are provided for long term
(C) Repo Rate(III) Also known as Penal Interest Rate
(D) Reverse Repo Rate(IV) Central Bank borrows funds from commercial banks

Match List-I with List-II :

Solution

Correct Option: 2
  1. Bank Rate -> minimum lending rate
  2. Marginal Standing Facility -> penal interest rate
  3. Repo Rate -> securities are pledged
  4. Reverse Repo Rate -> central bank borrows funds

Option 2 is correct: (A) - (II) matches -> Bank Rate is minimum rate, (B) - (III) matches -> Marginal Standing Facility is penal, (C) - (I) matches -> Repo Rate involves securities, (D) - (IV) matches -> Reverse Repo Rate involves central bank borrowing.

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