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RBI’s mandate is to manage inflation in the economy. OMO refers to the purchase and sale of the Government securities (G-Secs) by RBI from / to market. OMOs are conducted to adjust the rupee liquidity in the economy to ultimately manage inflation. When RBI sells government security in the markets, the banks purchase them, which reduce money with banks and their ability to lend therefore reducing the money supply in market. The reduced money supply will reduce the purchasing power and reduce inflation. When RBI purchases the securities, the market will have more money supply and it will increase the inflation.
50 litres of a mixture of milk and water contains 14 litres more milk than water. 8 litres water is added to it. The ratio of milk to water in the new m...
A sum of money is divided among P, Q, R and S in the ratio of 3:4:8:9 respectively. If the share of R's is Rs. 2600 more than the share of Q, then what ...
Before a battle the ratio of tanks to planes in an army was 5 : 3. During the war 1000 tanks were destroyed and 800 planes were destroyed. The ratio of ...
If the number of coins in purse A and purse B is in the ratio 4:5, and the number of coins in purse C to purse D is in the ratio 3:4. Additionally, the ...
In a class of 250 students, 150 are girls and remaining are boys. Among boys, the ratio of number of boys who are wearing caps to those who are not wear...
Average run per wicket of a bowler is 11.5. In his next innings bowler took 5 wickets and conceded 40 runs, thereby he reduced his bowling average by 0....
Population of a town is 1,20,000. If number of the male increase by 7% and Females increase by 10% then the population of town would increase by 9.5 %. ...
P, Q and R together started a business. Three times the investment of P equals five times the investment of Q and the capital of Q is twice that of R. F...
The sum of three numbers is 202. If the ratio of the first to the second is 3:5 and that of second to the third is 7:9 then the second number is?