Match List-I with List-II:

Choose the correct answer from the options given below:

Correct option is B

(A) Bank Rate: This is the minimum rate at which the central bank lends short-term funds to commercial banks. It influences short-term interest rates in the economy. (Matches with (II) Minimum rate at which funds are provided for long term - This description is not entirely accurate. Bank Rate typically applies to short-term loans)
(B) Marginal Standing Facility (MSF): This is a window for banks to borrow short-term funds from the central bank at a penalty rate as a last resort. (Matches with (III) Also known as Penal Interest Rate)
(C) Repo Rate: This is the rate at which the central bank lends short-term funds to banks by repurchasing government securities. Repo operations influence liquidity in the banking system. (Matches with (I) Securities are pledged in order to repurchase - Repo involves repurchasing securities)
(D) Reverse Repo Rate: This is the rate at which the central bank absorbs liquidity from the banking system by borrowing short-term funds from banks through selling government securities. (Matches with (IV) Central Bank borrows funds from commercial banks - Reverse Repo involves borrowing from banks)