Press Enter

Share with your friends and help them crack UPSC!

Or Share on


Correct Option is Open market operations

Solution:Open market operations are flexible, and thus, the most frequently used tool of monetary policy.Open market operations (OMO) refers to RBI practice of buying and selling Government securities, along with other securities, on the open market in order to regulate the supply of money. RBI purchases Treasury securities to increase the supply of money and sells them to reduce the supply of money.

Get access to all of our verified questions