Question

The term "open market operations means" sale and purchase of ________ by thereserve bank of india

Answer 1

Open market operations refer to the 'sale and purchase of GOVERNMENT SECURITIES by the reserve bank of India'.

Open market operations are done in an economy in order to increase or decrease the amount of money in the banking system.

When the securities are purchased by the reserve bank, this injects money into the banking system of the economy and also stimulates the growth, on the other hand when securities are sold into the market, this contracts the banking system of the economy.

Answer 2

Answer:

Government security is the answer