Q. Consider the following statements:

1. The Market Stabilization Scheme provides for issue of Treasury Bills and/or dated securities by the Government in addition to their normal market borrowing programme up to an annual aggregate ceiling.
2. The money raised in Market Stabilization Fund is kept in the MSS Account as a part of Consolidated Fund of India
3. The auditing of the MSS Fund is done by Comptroller and Auditor General of India

Which among the above statements is / are correct?
Answer: Only 1 is correct
Notes: The correct answer is "Only 1 is correct." Explanation: 1. The Market Stabilization Scheme (MSS) allows the government to issue Treasury Bills and dated securities to manage liquidity, but it does not involve a separate borrowing program beyond the normal limits. 2. The money raised under the MSS is not kept in the MSS Account as part of the Consolidated Fund of India. instead, it is maintained in a separate account. 3. While the Comptroller and Auditor General of India (CAG) audits government accounts, the MSS Fund itself is not specifically audited by the CAG. Trivia Fact: The MSS was introduced in 2004 to help the Reserve Bank of India manage excess liquidity in the economy, particularly during periods of high capital inflows.