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UPSC 2013: In the context of Indian economy, ‘Open Market Operations’ refers to
(a)borrowing by scheduled banks from the RBI
(b)lending by commercial banks to industry and trade
(c)purchase and sale of government securities by the RBI
(d)None of the above
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Not attemptedCorrect Answer: (c) purchase and sale of government securities by the RBI
Open Market Operations (OMOs) are a monetary-policy instrument in which the Reserve Bank of India buys or sells Government securities in the open market to inject or absorb liquidity. They are not about RBI borrowing from banks or banks’ commercial lending. ([rbi.org.in](https://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=234&utm_source=openai))
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What is the correct answer to this UPSC 2013 Indian Economy question?▼
The correct answer is option (c): purchase and sale of government securities by the RBI. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Monetary Policy & Money Supply question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2013, GS Paper 1, as Question 75. It falls under Indian Economy > Monetary Policy & Money Supply.
What is the difficulty level of this UPSC question?▼
This question is rated "easy". It tests basic recall and most well-prepared aspirants should answer it correctly.
How many UPSC Prelims questions have been asked from Monetary Policy & Money Supply?▼
UPSC has asked 27 questions from Monetary Policy & Money Supply (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.