2 Views

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


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

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.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books