In the context of Indian economy lsquo Open Market Operations rsquo refers to ........

Economic Affairs Money Supply and Monetary Policy

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In the context of Indian economy, ‘Open Market Operations’ refers to

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UPSC CSP Previous Year Paper (2013)

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Borrowing by scheduled banks from the RBI

Lending by commercial banks to industry and trade

Purchase and sale of government securities by the RBI

None of the above

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Explanation:

Open market operations is a tool that the RBI uses to smoothen liquidity conditions through the year and regulate money supply in the economy. Open market operations is the sale and purchase of government securities and treasury bills by RBI or the central bank of the country.

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