Question : Which RBI tool refers to the buying and selling of bonds issued by the Government in the open market?
Option 1: Liquidity adjustment facility
Option 2: Moral suasion
Option 3: Marginal standing facility
Option 4: Open market operations
Correct Answer: Open market operations
Solution : The correct answer is Open market operations .
Open market operations are the central banks buying and selling Government Security and bones in the open market to expand or contract the amount of money in the banking system. It is a kind of tool or instrument of the Reserve Bank of India to increase or decrease the money supply in the economy.
Related Questions
Know More about
Staff Selection Commission Multi Tasking ...
Application | Cutoff | Selection Process | Preparation Tips | Eligibility | Exam Pattern | Admit Card
Get Updates Brochure
Your Staff Selection Commission Multi Tasking Staff Exam brochure has been successfully mailed to your registered email id “”.
