Question

which among the below are effected by the open market operations conducted by the reserve bank of india

1) inflation
2) intrest rate
3)both
4)nine of them

Answer 1

Answer:

interest rate

Explanation:

because it is a bank and uses the formula of simple interest

which is

PxRxT

   2

Answer 2

The correct answer is 3

Explanation:

• OMO stands for open market operations is defined as the purchase and the sale of the treasury bills and the government securities through central bank of the Country or RBI (Reserve Bank of India).
• It regulate the money supply within the economy.

• It is the one of the tool or technique which the RBI, uses in order to smoothen condition of the liquidity through out the year and also minimise the impact on the levels of the inflation rate and the interest rate.

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