RBI and Its Policies · UPSC CDS/OTA · Question 2 of 30

RBI and Its Policies – Question 2

Step-by-step solution. RBI and Its Policies for UPSC CDS/OTA.

Topic
RBI and Its Policies
Subject
General Studies
Difficulty
Medium
Solve Time
45–60 sec

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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
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RBI and Its Policies Question 2 – UPSC CDS/OTA