Q. The purchase and sale of government securities by the Reserve Bank of India (RBI) is known as:

[A] Statutory Liquidity Ratio (SLR)

[B] Open Market Operations (OMO)

[C] Market Stabilization Scheme (MSS)

[D] Ways and Means Advances (WMA)

Answer: B
Notes:

Explanation – Open Market Operations (OMO) refers to the purchase and sale of government securities by the Reserve Bank of India (RBI) in the open market. This is a key monetary policy tool used by the RBI to regulate liquidity in the banking system, influence interest rates, and control inflation.

Source: The Hindu

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