MCQOPTIONS
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| 1. |
Which one is NOT true regarding the Market Stabilization Scheme (MSS)? |
| A. | It absorbs surplus liquidity of enduring nature arising out of large capital flows |
| B. | It absorbs surplus liquidity through sale of short-dated government securities and treasury bills |
| C. | Mobilised surplus liquidity is held in the MSS account with the Reserve Bank of India |
| D. | MSS account liquidity can be used for normal government expenditure of capital nature |
| Answer» E. | |