Question

Which of the following correctly defines Open Market Operations (OMOs) as a monetary policy tool of the RBI?

A OMOs are the RBI's daily overnight lending and borrowing transactions with banks under the Liquidity Adjustment Facility (LAF)
B OMOs are purchases and sales of Government Securities by the RBI in the secondary market to inject or absorb liquidity from the banking system
C OMOs are the RBI's interventions in the foreign exchange market to stabilise the rupee exchange rate
D OMOs are compulsory purchases of priority sector bonds by commercial banks on RBI instructions
E OMOs are the issuance of new Government Securities by the Ministry of Finance to fund the fiscal deficit
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