GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The open market operations refer to the sale and purchase by the RBI of
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Foreign Exchange
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Gold
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Government Securities
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All of these
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Explanation:
Detailed explanation-1: -Open market operations (OMOs)–the purchase and sale of securities in the open market by a central bank–are a key tool used by the Federal Reserve in the implementation of monetary policy. The short-term objective for open market operations is specified by the Federal Open Market Committee (FOMC).
Detailed explanation-2: -Open market operations (OMO) of RBI comprise outright sale and purchase of securities, Repo and Reverse Repo operations through LAF. While the outright OMO are directed at influencing enduring liquidity, the LAF OMO operations target the temporary liquidity in the system.
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