BANKING GENERAL KNOWLEDGE
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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SEBI
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SIDBI
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RBI
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NABARD
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Detailed explanation-1: -Open market operations (OMO) of RBI comprise outright sale and purchase of securities, Repo and Reverse Repo operations through LAF.
Detailed explanation-2: -An Open Market Operation (OMO) is the buying and selling of government securities in the open market, hence the nomenclature. It is done by the central bank in a country (the RBI in India). When the central bank wants to infuse liquidity into the monetary system, it will buy government securities in the open market.
Detailed explanation-3: -Open market operations refer to the selling and purchasing of the treasury bills and government securities by the central bank of any country in order to regulate money supply in the economy. It is one of the most important ways of monetary control that is exercised by the central banks.
Detailed explanation-4: -The Reserve Bank of India conducted open market operations for the first time in 2019. In India, the RBI regulates OMOs by buying and selling G-Secs, government securities, in and out of the market. The main goal is to change the rupeeās market liquidity conditions in the long term.
Detailed explanation-5: -Open market operation (OMO) is a term that refers to the purchase and sale of securities in the open market by the Federal Reserve (Fed). The Fed conducts open market operations to regulate the supply of money that is on reserve in U.S. banks.