Multiple choice

'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) are part of Credit Policy (monetary policy). Central banks buy and sell government securities to control money supply and interest rates. OMOs are a primary tool used by RBI to regulate liquidity in the banking system.

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