Solved UPSC CDS/OTA Question
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Q · RBI and Its PoliciesMedium · 45s
Which one of the following statements best describes ‘Open Market Operations’ (OMO) of the RBI?
TopicRBI and Its Policies
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
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OMOs are conducted by RBI to regulate liquidity through buying/selling government securities. It is a key monetary policy tool.
Final Answer: Option A - Buying and selling of government securities in the open market