The _____ and ______ determine the corridor for the daily movement in the weighted average call money rate.

Marginal standing facility, Reverse repo rate

The correct answer is Option (2) - Marginal standing facility, Reverse repo rate

• MSF(Marginal Standing Facility) Rate is the rate at which commercial banks borrow funds overnight from the central bank.
• The reverse repo rate is the rate at which banks earn interest when they park surplus funds with the RBI. The repo rate helps control inflation, and the reverse repo rate increases liquidity.
• The weighted average of the marginal standing facility (MSF) and the reverse repo rate (RRR) determine the corridor for daily movement in the call money rate.