Question : Which of the following is one of the Open Market Operations of the Reserve Bank of India?
Option 1: Buying and selling of bonds issued by the Government in the open market
Option 2: Buying and selling of bonds issued by commercial banks in the open market
Option 3: Only buying of bonds issued by the Government in the open market
Option 4: Only selling of bonds issued by the Government in the open market
Correct Answer: Buying and selling of bonds issued by the Government in the open market
Solution : The correct option is Buying and selling bonds issued by the Government in the open market.
Open Market Operations (OMO) refers to the buying and selling of government securities by a central bank. These operations are conducted to control the money supply, liquidity, and interest rates in the economy.
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Question : Regional Rural Banks are sponsored by:
Option 1: Nationalised Commercial Bank
Option 2: Reserve Bank of India
Option 3: State Bank of India
Option 4: Government of India
Question : It is an instrument of short term borrowings issued by Reserve Bank of India on behalf of Indian government. Which money market instrument is highlighted in the given statement?
Option 1: Treasury bill
Option 2: Commercial paper
Option 3: Call money
Option 4: Commercial bill
Question : Which one of the following is not an instrument of credit control in India?
Option 1: Rationing of credit
Option 2: Direct action
Option 3: Open market operations
Option 4: Variable cost reserve ratios
Question : In India, _____fixes the Cash Reserve Ratio(CRR) for the banks in the economy.
Option 1: Reserve Bank of India
Option 2: Ministry of Finance
Option 3: Ministry of External Affairs
Option 4: State Bank of India
Question : Which money market instrument is highlighted in the given statement? Statement: They are generally used by commercial banks to maintain minimum cash balance with Reserve Bank of India.
Option 4: All of the above
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