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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.
Which one of the following is not a genetic disease?
Medaram Jathara festival is celebrated in which Indian state?
Under which climatic conditions do the late rite soils develop?
What is the relationship between interest rate and demand for money?
Which country is the largest producer of Cement in the world?
Which one of the following registers contains the address of the next location in the memory to be accessed?
First session of INC was held in which city?
A Suitable Boy is a book penned by which of the following writers?
The recent update in the Pradhan Mantri Jan Dhan Yojana (PMJDY) targets which of the following?
The process by which two immiscible liquids, get mixed while one disperses as small droplets within the other is known as __________