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If the RBI adopts an expansionist open market operations policy, this means that it will
  • a)
    buy securities from non-government holders
  • b)
    sell securities in the open market
  • c)
    offer the commercial banks more credit in the open market
  • d)
    openly announce to the market that it intends to expand credit
  • e)
    stop the printing of the currency
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
If the RBI adopts an expansionist open market operations policy, this...
'Open market operations' (OMO) refers to the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system, facilitated by the Federal Reserve.
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If the RBI adopts an expansionist open market operations policy, this means that it willa)buy securities from non-government holdersb)sell securities in the open marketc)offer the commercial banks more credit in the open marketd)openly announce to the market that it intends to expand credite)stop the printing of the currencyCorrect answer is option 'A'. Can you explain this answer?
Question Description
If the RBI adopts an expansionist open market operations policy, this means that it willa)buy securities from non-government holdersb)sell securities in the open marketc)offer the commercial banks more credit in the open marketd)openly announce to the market that it intends to expand credite)stop the printing of the currencyCorrect answer is option 'A'. Can you explain this answer? for Banking Exams 2024 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about If the RBI adopts an expansionist open market operations policy, this means that it willa)buy securities from non-government holdersb)sell securities in the open marketc)offer the commercial banks more credit in the open marketd)openly announce to the market that it intends to expand credite)stop the printing of the currencyCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Banking Exams 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the RBI adopts an expansionist open market operations policy, this means that it willa)buy securities from non-government holdersb)sell securities in the open marketc)offer the commercial banks more credit in the open marketd)openly announce to the market that it intends to expand credite)stop the printing of the currencyCorrect answer is option 'A'. Can you explain this answer?.
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