Multiple choice

Directions: Choose the correct option for the given question: ‘Open market operation’ is a part of............

  1. Income Policy

  2. Fiscal Policy

  3. Credit Policy

  4. Labour Policy
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Open Market Operations (OMO) involve the buying and selling of government securities by the central bank in the open market. OMO is a key instrument of Credit (Monetary) Policy used by the RBI to control money supply and interest rates. It's not part of Fiscal Policy (government taxation/spending), Income Policy, or Labour Policy.

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