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If the RBI adopts an expansionist open market operations policy, this means that it will:
sell securities from non-government holders
buy securities in the open market
offer commercial banks more credit in the open market
openly announce to the market that it intends to expand credit
2nd option is correct. Open market operations are conducted by the RBI by way of sale or purchase of government securities (g-secs) to adjust money supply conditions. The central bank sells g-secs to suck out liquidity from the system and buys back g-secs to infuse liquidity into the system.
By: Abhipedia ProfileResourcesReport error
Sarthak Hans
Rectified. Check now
Sourav bisla
Reconsider
Shweta Maini
Rectify plz
Given answer is correct.
Sahil rana
please review the Answer. correct answer should either be 1st statement or 3rd statement.
Kindly revisit.
please review the answer
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