MCQOPTIONS
Saved Bookmarks
| 1. |
RBI, on behalf of government, issues MSS bonds to mop up extra liquidity from the market. This is same as Open Market Operations(OMO), but has a significant difference. What is it? |
| A. | Money raised from the market by MSS Bond is stored in government s normal account. |
| B. | Money raised from the market by MSS Bond is stored in a separate account, known as MSS Account, which cannot be used for normal government expenditure. |
| C. | Money is not raised by MSS bonds |
| D. | None of the above |
| Answer» C. Money is not raised by MSS bonds | |