New Enroll in RBI Grade B New Batch - Starts on May 21

    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.

    Practice Next