ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Open market operations are one of three tools used by the Fed to affect the availability of money and credit. The term refers to a central bank buying or selling securities in the open market to influence the money supply.

Detailed explanation-3: -Open Market Operations is the simultaneous sale and purchase of government securities and treasury bills by RBI. The objective of OMO is to regulate the money supply in the economy. RBI carries out the OMO through commercial banks and does not directly deal with the public.

Detailed explanation-4: -open-market operation, any of the purchases and sales of government securities and sometimes commercial paper by the central banking authority for the purpose of regulating the money supply and credit conditions on a continuous basis.

Detailed explanation-5: -The instruments of monetary policy include discount rate, reserve requirements, and open market operations.