Open Market Operations refer to the RBI

Indian Economy and Banking · Economic & Social Development · Hard · Practice for UPSC CSE GS 1

Open Market Operations refer to the RBI

  1. Auditing banks
  2. Lending to farmers
  3. Buying and selling government securities
  4. Fixing the exchange rate
Answer and solution

Correct answer: C) Buying and selling government securities

They change liquidity in the banking system.

Learn the method: Indian Economy and Banking rules and worked examples · UPSC CSE GS 1 Economic & Social Development

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