MSF is the rate at which banks can borrow overnight from RBI.This was introduced in the monetary policy of RBI for the year 2011-2012.
The MSF is pegged 100bps or a % above the repo rate.
Banks can borrow funds through MSF when there is a considerable shortfall of liquidity. This measure has been introduced by RBI to regulate short-term asset liability mismatches more effectively
Marginal Standing Facility
Tribal 638 provider based facility
LAFMSFLiquidity adjustment facility, this is for short term Marginal standing facility, this is for long term Minimum bidding amount is 5 cr. 1 cr. All clients of RBI are eligible to bid. Only scheduled commercial banks can bid. Bank cannot sell Government security to RBI that is part of bank's SLR quota. bank can sell the Government security from its SLR quota to RBI. Bank can borrow any amount of money as long as it has the securities to sell. Bank can maximum borrow upto 2% of its NDTL. Suppose repo rate is "r%" current rate [29-07-2013] : 7.25%MSF lending rate is always (r+x)%current rate [29-07-2013] : 10.25%
Marginal net benefits= Marginal benefit- Marginal cost
Marginal cost is
The optimal level of output is where marginal costs = marginal damages.
In economics, marginal profit is the difference between the marginal revenue and the marginal cost of producing an additional unit of output.
MSF is the rate at which banks can borrow overnight from RBI.This was introduced in the monetary policy of RBI for the year 2011-2012. The MSF is pegged 100bps or a % above the repo rate. Banks can borrow funds through MSF when there is a considerable shortfall of liquidity. This measure has been introduced by RBI to regulate short-term asset liability mismatches more effectively
Open market operation are used by the RBI for long term liquidity adjustment while reverse repo rate (or REPO) are used for short term LAF(liquidity adjustment facility). Now govt. introduced MSF(Marginal standing facility like Treasure Bills) to control short term fluctuation. Repo rate change offers range for Call Money Market, and now repo rates are monitored biweekly basis by RBI.
Three stages of production are increasing marginal returns, diminishing marginal returns, and negative marginal returns.
In regards to marginal vs. non-marginal syndesmophytes. Marginal syndesmophytes (intervertebral bony bony bridges) are more commonly seen in ankylosing spondylitis. Where as non-marginal syndesmophytes are more commonly in reactive arthritis and DISH. Marginal syndesmophytes are delicate + symmetric; while non-marginal syndesmophytes are bulky + discontinuous.
when marginal benefit is equal to marginal cost To be more specific: When the marginal damage cost of polluting is equal to the marginal abatement cost of polluting (or the marginal benefit of polluting, which is equivalent to the MAC)