Q. The market stabilization scheme was introduced in which of the following year?

[A] 1994

[B] 1999

[C] 2004

[D] 2008

Answer: C
Notes:

Explanation: Market Stabilization Scheme (MSS): This instrument for monetary management was introduced in 2004.

  • Surplus liquidity of a more enduring nature arising from large capital inflows is absorbed through sale of short-dated government securities and treasury bills.
  • The mobilized cash is held in a separate government account with the Reserve Bank. The instrument thus has features of both SLR and CRR.

Source: FORUMIAS

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