Open Market Operations (OMO) is a quantitative monetary policy tool used by the Reserve Bank of India (RBI) to control liquidity in the banking system. It involves the buying and selling of government securities (like Treasury Bills and Government Bonds) in the open market.
'Open market operations' by the RBI implies
Asked in WBCS Main Paper 5 2022 · Topic: Money & Banking (Monetary Policy: Objectives, Instruments (quantitative and qualitative), and Transmission Mechanism)
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Answer: C. sale and purchase of government securities by the RBI.
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