Select the correct option to test your answer: A It absorbs surplus liquidity of enduring nature arising out of large capital flows B It absorbs surplus liquidity through sale of short-dated government securities and treasury bills C Mobilised surplus liquidity is held in the MSS account with the Reserve Bank of India D MSS account liquidity can be used for normal government expenditure of capital nature Correct Answer: Option D (MSS account liquidity can be used for normal government expenditure of capital nature) Verified correct option for Commerce (Banking And Financial Institutions).