Q. Consider the following statements regarding Open Market Operations in India:
The market for Government securities is well developed in India
RBI has desired capability to buy and sell Government securities.
Open Market Operations alone can effectively carry out the Monetary Control in India
Which among the above statements is / are correct?
Answer: Only 2 is correct
Notes: The first statement is incorrect and this market is not well developed market. The second statement is out rightly correct and RBI has more than desired authority and capability. Third statement is NOT correct as RBI needs to resort to other ways such as LAF. OMO alone are not capable.
Above question is part of 10000+ MCQs for UPSC (Prelims) Paper-1 course in GKToday Android app.
