OMO transactions regulate liquidity in market

Q.  What does RBI regulate through Open Market Operation Transactions?
- Published on 20 Jul 15

a. Flow of Foreign Direct Investment
b. Borrowing powers of the banks
c. Inflation
d. Liquidity in economy

ANSWER: Liquidity in economy
Outright purchase and Repurchase agreement are the two traditional type of OMO's used by RBI.

Post your comment / Share knowledge

Enter the code shown above:
(Note: If you cannot read the numbers in the above image, reload the page to generate a new one.)