In India, which of the following institutions conducts Open Market Operations (OMOs) to manage money supply effectively?
Reserve Bank of India (RBI)
Open Market Operations (OMOs) are the buying and selling of government securities in the open market by the central bank to regulate liquidity and money supply in the economy.
In India, this monetary policy tool is exercised exclusively by the Reserve Bank of India (RBI), the country's central bank.
NABARD is a development bank for agriculture and rural credit, SEBI regulates securities markets, and individual state-owned banks are only participants, not conductors of OMOs.
Hence, Open Market Operations in India are conducted by the Reserve Bank of India (RBI).
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Important Questions from Money and Banking
Which one of the following is likely to be the most inflationary in its effects?
Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?
Consider the following statements :
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1. improves the competitiveness of the domestic exports in the foreign markets
2. increase the foreign value of domestic currency
3. improves the trade balance
Which of the above statements is/are correct?
Indian Government Bond Yields are influenced by which of the following?
1. Actions of the United States Federal Reserve
2. Actions of the Reserve Bank of India
3. Inflation and short-term interest rates
Select the correct answer using the code given below.
With reference to “Urban Cooperative Banks" in India, consider the following statements :
1. They are supervised and regulated by local boards set up by the State Governments.
2. They can issue equity shares and preference shares.
3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966
Which of the statements given above is/are correct?
