Q793
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
AnswerC.
Money is not raised by MSS bonds
D.
None of the above
Answer: Option B
Solution
Answer: Option B
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