UPSC Prelims 2014— Question 51

Correct answer: Option A. Marginal Standing Facility is an RBI facility through which eligible banks can borrow overnight from the central bank against eligible securities at the MSF rate. Net Demand and Time Liabilities is a banking liability measure used in reserve and liquidity regulation. Both terms belong to banking operations. Option A: Correct. This option is consistent with the governing fact or the valid combination identified in the question. The option reads: “banking operations” Option B: Incorrect. This option does not match the verified answer because its proposition, location, institution, sequence, or combination conflicts with the relevant fact tested in the question. The option reads: “communication networking” Option C: Incorrect. This option does not match the verified answer because its proposition, location, institution, sequence, or combination conflicts with the relevant fact tested in the question. The option reads: “military strategies” Option D: Incorrect. This option does not match the verified answer because its proposition, location, institution, sequence, or combination conflicts with the relevant fact tested in the question. The option reads: “supply and demand of agricultural products” The key Prelims lesson is to test each proposition independently before selecting the combination. Where the question uses words such as 'only', 'all', 'none', 'always' or a precise institutional/geographical association, a single inaccurate component is sufficient to eliminate the option. The answer recorded here follows the official answer key for the question-paper series represented by the uploaded source and has been cross-checked against an independent published key. The explanation is intended for conceptual revision rather than as a reproduction of any third-party solution.