Multiple choice

RBI’s open market operation transactions are carried out with a view to regulate

  1. liquidity in the economy

  2. prices of essential commodities

  3. inflation

  4. borrowing power of the <font face="Arial" size="2">banks</font>

  5. All of the above
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Option (5) is correct. Its main objective is to infuse or reduce liquidity in the market which indirectly regulates inflation, borrowing power of banks and prices of essential commodities.

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