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Which among the following is/are correct with respect to the Reserve Bank of India’s Open Market Operations?
1. It is the rate at which the banks are able to borrow overnight funds from RBI against the approved government securities.
2. It is one of the qualitative tools of RBI under his monetary policy.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which among the following is/are correct with respect to the Reserve B...
Statement 1 is not correct: Open market operations is the sale and purchase of government securities and treasury bills by RBI or the central bank of the country. And Marginal Standing Facility is a new Liquidity Adjustment Facility (LAF) window created by Reserve Bank of India in its credit policy of May 2011. MSF is the rate at which the banks are able to borrow overnight funds from RBI against the approved government securities.
Statement 2 is not correct: The quantitative instruments are Open Market Operations, Liquidity Adjustment Facility (Repo and Reverse Repo), Marginal Standing Facility, SLR, CRR, Bank Rate, Credit Ceiling etc. On the other hand, qualitative instruments are credit rationing, moral suasion and direct action (by RBI on banks).
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Which among the following is/are correct with respect to the Reserve Bank of India’s Open Market Operations?1. It is the rate at which the banks are able to borrow overnight funds from RBI against the approved government securities.2. It is one of the qualitative tools of RBI under his monetary policy.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?
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Which among the following is/are correct with respect to the Reserve Bank of India’s Open Market Operations?1. It is the rate at which the banks are able to borrow overnight funds from RBI against the approved government securities.2. It is one of the qualitative tools of RBI under his monetary policy.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about Which among the following is/are correct with respect to the Reserve Bank of India’s Open Market Operations?1. It is the rate at which the banks are able to borrow overnight funds from RBI against the approved government securities.2. It is one of the qualitative tools of RBI under his monetary policy.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which among the following is/are correct with respect to the Reserve Bank of India’s Open Market Operations?1. It is the rate at which the banks are able to borrow overnight funds from RBI against the approved government securities.2. It is one of the qualitative tools of RBI under his monetary policy.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?.
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