What is sold and purchased during Open Market Operations by RBI?
What is sold and purchased during Open Market Operations by RBI?
[A]Government Securities
[B]Commercial Papers
[C]Certificates of Deposits
[D]Global Depository Receipts
Government Securities
OMOs are conducted by the RBI via the sale/purchase of government securities to/from the market with the primary aim of modulating rupee liquidity conditions in the market OMOs are an effective quantitative policy tool in the armoury of the RBI, but are constrained by the stock of government securities available with it at a point in time