CURRENT AFFAIRS

Detailed explanation-1: -Treasury bills are money market instruments issued by the government of India to finance its short term financial requirements. You can buy them through the RBI Retail Direct platform or stock exchanges, but should you? RBI announced that it will hold the auction of the government’s treasury bills.

Detailed explanation-2: -Open market operation (OMO) is a monetary policy by the central bank in which the bank deals in the sale and purchase of securities in the open market to control the supply of money in the economy.

Detailed explanation-3: -Treasury bills (T-bills) offer short-term investment opportunities, generally up to one year. They are thus useful in managing short-term liquidity. At present, the Government of India issues four types of treasury bills, namely, 14-day, 91-day, 182-day and 364-day. T-bills are available for a minimum amount of Rs.

Detailed explanation-4: -True. The Central Bank buys government securities with an aim to increase the money supply. Purchase of securities by the Central Bank leaves more money with the people. It also increases liquidity of the commercial banks to create more credit (in terms of demand deposits).