If the Reserve Bank of India sells securities in the market it will result in........

Economic Affairs Money Supply and Monetary Policy

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If the Reserve Bank of India sells securities in the market, it will result in

An immediate change in the Bank rate

A fall in the market rate of interest

An increase in loans given by banks

Mopping up of excess liquidity in the economy

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Explanation:

If the Reserve Bank of India sells securities in the market, it will result in mopping up of excess liquidity in the economy. When the RBI feels there is excess liquidity in the market, it resorts to sale of securities thereby sucking out the rupee liquidity. It is simple operation, wherein RBI sells the government securities to banks, who pay for these investments. Thus excess liquidity goes to RBI.