Question

Open - market operations of Reserve Bank of India refer to;

A trading in securities Correct Answer Incorrect Answer
B auctioning of Foreign Exchange Correct Answer Incorrect Answer
C transaction in gold Correct Answer Incorrect Answer
D transaction in Oil Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

Open Market Operations refer to the purchase and sale of the Government securities (trading of the securities) by RBI from / to market. The objective of Open Market Operations is to adjust the rupee liquidity conditions in the economy on a durable basis.

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