Home PYQs UPPSC UPPSC MCQs Prelims 2010 (GS Paper I)

Question

Open-market operations of Reserve Bank of India refer to

  1. trading in securities
  2. auctioning of Foreign Exchange
  3. transaction in gold
  4. none of the above

Answer:

Option A: trading in securities

Detailed Solution:

The correct answer is “trading in securities”.

Open market operations (OMOs) are a tool used by the Reserve Bank of India (RBI) to buy and sell government securities and other financial assets from and to banks and financial institutions.