{"id":91119,"date":"2025-06-01T10:47:15","date_gmt":"2025-06-01T10:47:15","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91119"},"modified":"2025-06-01T10:47:15","modified_gmt":"2025-06-01T10:47:15","slug":"in-the-context-of-indian-economy-open-market-operations-refers-to","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/in-the-context-of-indian-economy-open-market-operations-refers-to\/","title":{"rendered":"In the context of Indian economy, ‘Open Market Operations’ refers to"},"content":{"rendered":"

In the context of Indian economy, ‘Open Market Operations’ refers to<\/p>\n

[amp_mcq option1=”borrowing by scheduled banks from the RBI” option2=”lending by commercial banks to industry and trade” option3=”purchase and sale of government securities by the RBI” option4=”None of the above” correct=”option3″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC IAS – 2013<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nIn the context of the Indian economy, ‘Open Market Operations’ (OMO) refers to the purchase and sale of government securities by the Reserve Bank of India (RBI) in the open market.
\n<\/section>\n
\nOMO is a quantitative monetary policy tool used by the central bank to manage liquidity in the economy. When the RBI buys government securities from the market, it injects liquidity (money supply increases). When it sells government securities, it absorbs liquidity (money supply decreases).
\n<\/section>\n
\nOMO is a key instrument used by the RBI to influence interest rates and control inflation. Other monetary policy tools include the Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Repo Rate, Reverse Repo Rate, Bank Rate, and Marginal Standing Facility (MSF).
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

In the context of Indian economy, ‘Open Market Operations’ refers to [amp_mcq option1=”borrowing by scheduled banks from the RBI” option2=”lending by commercial banks to industry and trade” option3=”purchase and sale of government securities by the RBI” option4=”None of the above” correct=”option3″] This question was previously asked in UPSC IAS – 2013 Download PDFAttempt Online In … <\/p>\n

Detailed SolutionIn the context of Indian economy, ‘Open Market Operations’ refers to<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1467,1120,1190],"class_list":["post-91119","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1467","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"\nIn the context of Indian economy, 'Open Market Operations' refers to<\/title>\n<meta name=\"description\" content=\"In the context of the Indian economy, 'Open Market Operations' (OMO) refers to the purchase and sale of government securities by the Reserve Bank of India (RBI) in the open market. OMO is a quantitative monetary policy tool used by the central bank to manage liquidity in the economy. 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