Under open market operations, the RBI sells the government securities to reduce the amount of money in the economy.

True

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

False

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A True

Suggest Corrections

Similar questions

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

Q. When the RBI makes open market operations by sale of securities the money supply in the banking system?

How does the "purchase of government securities in the open market" affect the money supply?

The RBI adopts various Monetary Policies at different times. If you read in Newspaper that RBI has adopted expansionary policy, what would you conclude by this?

Codes :

2 and 3 only
2, 3 and 4 only
1, 2 and 4 only
1 and 2 only

Q. Purchase or sale of government securities by the Central bank from the general public in the bond market, in a bid to increase or decrease the money supply in the economy is referred to as ________.

Join BYJU'S Learning Program