Which was introduced to absorb surplus liquidity of
more enduring nature and reduce the burden of sterilisation on LAF?
AMSSCorrect AnswerIncorrect Answer
BRepoCorrect AnswerIncorrect Answer
CReverse RepoCorrect AnswerIncorrect Answer
DIRS Correct AnswerIncorrect Answer
EAll of the aboveCorrect AnswerIncorrect Answer
Solution
Market Stabilisation Scheme was introduced on April 01, 2004 when there was persistence flow of foreign exchange and RBI was using LAF to absorb the excess liquidity.