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Discussion

What is meant by Open Market Operations?

  • A.Purchase and sale of the Government Securities by RBI
  • B.Rationing of the credit allocated by commercial banks by RBI
  • C.Request by the RBI to the commercial banks to take certain measures
  • D.None of the above

Answer: A

Open Market Operations (OMO) refer to the purchase and sale of the Government Securities (G-Secs) by RBI from / to market.

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