The RBI sells securities in the open market using the monetary tool of open market operations.

private

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equity

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government

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preference

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Solution

The correct option is C government
The RBI uses a monetary tool called open market operations to sell government securities in the open market. Government securities are government debt issuances used to fund daily operations, special infrastructure, and military projects. They guarantee the full repayment of the invested principal at the maturity of the security and often pay periodic coupons or interest payments.

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Q19) Open market operations of the RBI

Open market operation of RBI refers to:

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