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

Correct Answer: MSS account liquidity can be used for normal government expenditure of capital nature

Bissoy MCQ
#Commerce #Banking And Financial Institutions

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