2020
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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WMA arrangement enables centre and the states to borrow money up to how many days from the RBI to tide over their liquidity mismatch?
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90
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70
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80
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45
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Explanation:
Detailed explanation-1: -It has been decided, in consultation with the Government of India, that the limit for Ways and Means Advances (WMA) for the second half of the financial year 2022-23 (October 2022 to March 2023) will be ₹50, 000 crore.
Detailed explanation-2: -The increased override limit of WMA enables states to borrow money from RBI on a short-term basis if the states are facing a budget deficit. WMA funding is cheaper than borrowings from markets or other schemes because it has a longer maturity date, and its interest rate is also lower.
Detailed explanation-3: -repayable in each case not later than three months from the date of making that advance’. There are two types of WMA – normal and special.
There is 1 question to complete.