Which of the following is the main objective of Open Market Operations?
Which of the following is the main objective of conductive Open Market Operations?
[A]Adjust the capitalization of Banks
[B]To contain current account deficit
[C]To boost share markets
[D]To adjust liquidity conditions
To adjust liquidity conditions
Open Market Operations (OMO) refer to the purchase and sale of the Government Securities (G-Secs) by RBI from / to market. The objective of OMO is to adjust the rupee liquidity conditions in the economy on a durable basis. The working of OMOs is defines as below: