Home › CS Executive › ebcl › Reserve Bank of India Act, 1934 › Among the instruments of monetary policy listed …
Among the instruments of monetary policy listed in the lesson, the Market Stabilisation Scheme was introduced in a specific year as a sterilisation tool. In which year was the MSS introduced?
Answer & Solution
Correct answer: D.
1. The MSS is listed among monetary policy instruments in the lesson.
2. The lesson dates its introduction to April 2004.
3. Surplus liquidity from foreign exchange operations is absorbed by issuing short-dated GoI securities and treasury bills under MSS.
4. The other years are not the introduction date.
_Source: ICSI CS Executive Paper 7 (Economic, Business and Commercial Laws) — Lesson 1: Reserve Bank of India Act, 1934, pp. 8-21._
Related questions
Section 56 of the Banking Regulation Act, 1949 plays a specific bridging role with respectSection 22 of the BR Act, 1949 confers a specific licensing power on the RBI in relation tThe lesson notes that the BR Act, 1949 contains no specific provision for forming a formalSection 45U(a) of the RBI Act, 1934 defines "derivative" for the purposes of RBI regulatioSection 35-A of the Banking Regulation Act, 1949, cited in the lesson, gives the RBI a widSection 29 of the RBI Act, 1934 confers a specific tax exemption on the Reserve Bank in reThe lesson cites the Paper Currency Act, 1861 as a key historical milestone in note-issue.Section 26(1) of the RBI Act, 1934 establishes the legal-tender character of banknotes. Wh