Question

With reference to Market Stabilisation Scheme (MSS), consider the following statements:

It is a tool used by the RBI to suck out excess liquidity from the market through issue of securities on behalf of the government.
The money raised under MSS is parked in the government account or utilised to fund its expenditure.
Which of the statements given above is/are true?

1 only
2 only
Both 1 and 2
Neither 1 nor 2

Answer 1

both 1 and 2..........