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Consider the following statements regarding Open market operations.
- Open market operations are conducted by the Reserve Bank of India (RBI) with an objective to adjust the rupee liquidity conditions in the market on a durable basis.
- These operations are conducted only on quarterly basis in a manner that balances inflation while helping banks continue to lend.
- RBI carries out the Open market operations through commercial banks and does not directly deal with the public.
Which of the above statements is/are correct?
- a)1, 2
- b)2, 3
- c)1, 3
- d)1, 2, 3
Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements regarding Open market operations. Op...
Open Market Operations Overview:
Open market operations are conducted by the Reserve Bank of India (RBI) with the primary objective of adjusting the rupee liquidity conditions in the market on a durable basis. These operations play a crucial role in regulating the money supply, managing inflation, and influencing interest rates in the economy.
Correct Statements:
- Statement 1: Open market operations are conducted by the Reserve Bank of India (RBI) with an objective to adjust the rupee liquidity conditions in the market on a durable basis. This statement is correct as open market operations are indeed carried out by the RBI to manage liquidity in the market.
- Statement 3: RBI carries out the Open market operations through commercial banks and does not directly deal with the public. This statement is also accurate as the RBI conducts open market operations by buying and selling government securities from/to commercial banks and not directly with the general public.
Incorrect Statement:
- Statement 2: These operations are conducted only on a quarterly basis in a manner that balances inflation while helping banks continue to lend. This statement is incorrect as open market operations are conducted regularly and not limited to a quarterly basis. The frequency of these operations depends on the prevailing economic conditions and the RBI's monetary policy stance.
Therefore, the correct answer is option C, which includes the accurate statements about open market operations conducted by the RBI.
Open market operations are conducted by the Reserve Bank of India (RBI) with the primary objective of adjusting the rupee liquidity conditions in the market on a durable basis. These operations play a crucial role in regulating the money supply, managing inflation, and influencing interest rates in the economy.
Correct Statements:
- Statement 1: Open market operations are conducted by the Reserve Bank of India (RBI) with an objective to adjust the rupee liquidity conditions in the market on a durable basis. This statement is correct as open market operations are indeed carried out by the RBI to manage liquidity in the market.
- Statement 3: RBI carries out the Open market operations through commercial banks and does not directly deal with the public. This statement is also accurate as the RBI conducts open market operations by buying and selling government securities from/to commercial banks and not directly with the general public.
Incorrect Statement:
- Statement 2: These operations are conducted only on a quarterly basis in a manner that balances inflation while helping banks continue to lend. This statement is incorrect as open market operations are conducted regularly and not limited to a quarterly basis. The frequency of these operations depends on the prevailing economic conditions and the RBI's monetary policy stance.
Therefore, the correct answer is option C, which includes the accurate statements about open market operations conducted by the RBI.
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Consider the following statements regarding Open market operations. Open market operations are conducted by the Reserve Bank of India (RBI) with an objective to adjust the rupee liquidity conditions in the market on a durable basis. These operations are conducted only on quarterly basis in a manner that balances inflation while helping banks continue to lend. RBI carries out the Open market operations through commercial banks and does not directly deal with the public.Which of the above statements is/are correct?a)1, 2b)2, 3c)1, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements regarding Open market operations. Open market operations are conducted by the Reserve Bank of India (RBI) with an objective to adjust the rupee liquidity conditions in the market on a durable basis. These operations are conducted only on quarterly basis in a manner that balances inflation while helping banks continue to lend. RBI carries out the Open market operations through commercial banks and does not directly deal with the public.Which of the above statements is/are correct?a)1, 2b)2, 3c)1, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Open market operations. Open market operations are conducted by the Reserve Bank of India (RBI) with an objective to adjust the rupee liquidity conditions in the market on a durable basis. These operations are conducted only on quarterly basis in a manner that balances inflation while helping banks continue to lend. RBI carries out the Open market operations through commercial banks and does not directly deal with the public.Which of the above statements is/are correct?a)1, 2b)2, 3c)1, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Open market operations. Open market operations are conducted by the Reserve Bank of India (RBI) with an objective to adjust the rupee liquidity conditions in the market on a durable basis. These operations are conducted only on quarterly basis in a manner that balances inflation while helping banks continue to lend. RBI carries out the Open market operations through commercial banks and does not directly deal with the public.Which of the above statements is/are correct?a)1, 2b)2, 3c)1, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer?.
Consider the following statements regarding Open market operations. Open market operations are conducted by the Reserve Bank of India (RBI) with an objective to adjust the rupee liquidity conditions in the market on a durable basis. These operations are conducted only on quarterly basis in a manner that balances inflation while helping banks continue to lend. RBI carries out the Open market operations through commercial banks and does not directly deal with the public.Which of the above statements is/are correct?a)1, 2b)2, 3c)1, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Open market operations. Open market operations are conducted by the Reserve Bank of India (RBI) with an objective to adjust the rupee liquidity conditions in the market on a durable basis. These operations are conducted only on quarterly basis in a manner that balances inflation while helping banks continue to lend. RBI carries out the Open market operations through commercial banks and does not directly deal with the public.Which of the above statements is/are correct?a)1, 2b)2, 3c)1, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Open market operations. Open market operations are conducted by the Reserve Bank of India (RBI) with an objective to adjust the rupee liquidity conditions in the market on a durable basis. These operations are conducted only on quarterly basis in a manner that balances inflation while helping banks continue to lend. RBI carries out the Open market operations through commercial banks and does not directly deal with the public.Which of the above statements is/are correct?a)1, 2b)2, 3c)1, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer?.
Solutions for Consider the following statements regarding Open market operations. Open market operations are conducted by the Reserve Bank of India (RBI) with an objective to adjust the rupee liquidity conditions in the market on a durable basis. These operations are conducted only on quarterly basis in a manner that balances inflation while helping banks continue to lend. RBI carries out the Open market operations through commercial banks and does not directly deal with the public.Which of the above statements is/are correct?a)1, 2b)2, 3c)1, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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ample number of questions to practice Consider the following statements regarding Open market operations. Open market operations are conducted by the Reserve Bank of India (RBI) with an objective to adjust the rupee liquidity conditions in the market on a durable basis. These operations are conducted only on quarterly basis in a manner that balances inflation while helping banks continue to lend. RBI carries out the Open market operations through commercial banks and does not directly deal with the public.Which of the above statements is/are correct?a)1, 2b)2, 3c)1, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.
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