How will RBI use open market operation
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Step-by-step explanation:
open market operation is a tool the RBI used to smoothen liquidity condition through the year and regulated money supply in the economy .
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Answer: Open market operations are conducted by the RBI by sale or purchase of government securities to regulate money supply in the market. The sale or buying of g-secs infuses or reduces liquidity. OMOs like repo rate, cash reserve ratio and statutory liquidity ratio are monetary policy tools to balances inflation.
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