In the context of Indian economy, Open Market Operations’ refers to:
Detailed Explanation:
Open Market Operations (OMO) is a monetary policy tool where the Reserve Bank of India (RBI) buys or sells government securities in the open market to regulate money supply and liquidity.
When the RBI purchases securities, it injects liquidity into the banking system, lowering interest rates; when it sells securities, it absorbs excess liquidity, raising interest rates to control inflation.
Question 15 of 17 Monetary Policy
Practice PYQ questions from this topic across all years
An increase in the Bank Rate generally indicates that the:
Supply of money remaining the same when there is an increase in demand for money, the...