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    Question

    Which was introduced to absorb surplus liquidity of

    more enduring nature and reduce the burden of sterilisation on LAF?
    A MSS Correct Answer Incorrect Answer
    B Repo Correct Answer Incorrect Answer
    C Reverse Repo Correct Answer Incorrect Answer
    D IRS Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect 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.   

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