Which one is NOT true regarding the Market Stabilization Scheme (MSS)?

1
It absorbs surplus liquidity of enduring nature arising out of large capital flows
2
It absorbs surplus liquidity through sale of short-dated government securities and treasury bills
3
Mobilised surplus liquidity is held in the MSS account with the Reserve Bank of India
4
MSS account liquidity can be used for normal government expenditure of capital nature

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