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Your results are here!! for" Open Market Operation (OMO) "
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Question 1 of 5
1. Question
What is Open Market Operation (OMO)?
Correct
OMO is a monetary policy tool used by the RBI to regulate liquidity in the banking system by buying and selling government securities in the open market.
Incorrect
OMO is a monetary policy tool used by the RBI to regulate liquidity in the banking system by buying and selling government securities in the open market.
Unattempted
OMO is a monetary policy tool used by the RBI to regulate liquidity in the banking system by buying and selling government securities in the open market.
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Question 2 of 5
2. Question
What does the RBI do through OMO when there is excess liquidity in the economy?
Correct
When excess liquidity exists, the RBI sells government securities to absorb surplus money and help control inflation.
Incorrect
When excess liquidity exists, the RBI sells government securities to absorb surplus money and help control inflation.
Unattempted
When excess liquidity exists, the RBI sells government securities to absorb surplus money and help control inflation.
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Question 3 of 5
3. Question
What does the RBI do through OMO when liquidity is low?
Correct
When liquidity is low, the RBI buys government securities, injecting cash into the banking system and supporting economic activity.
Incorrect
When liquidity is low, the RBI buys government securities, injecting cash into the banking system and supporting economic activity.
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When liquidity is low, the RBI buys government securities, injecting cash into the banking system and supporting economic activity.
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Question 4 of 5
4. Question
Which of the following is an important impact of OMO on the economy?
Correct
OMO helps adjust the money supply and liquidity in the economy, which can also influence inflation and interest rates.
Incorrect
OMO helps adjust the money supply and liquidity in the economy, which can also influence inflation and interest rates.
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OMO helps adjust the money supply and liquidity in the economy, which can also influence inflation and interest rates.
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Question 5 of 5
5. Question
On which date did the RBI undertake the OMO and term repo measures mentioned in the provided COVID-19 example?
Correct
The provided content states that on 23 March 2020, RBI infused ₹1 trillion through term repo auctions and a large OMO purchase of government securities.
Incorrect
The provided content states that on 23 March 2020, RBI infused ₹1 trillion through term repo auctions and a large OMO purchase of government securities.
Unattempted
The provided content states that on 23 March 2020, RBI infused ₹1 trillion through term repo auctions and a large OMO purchase of government securities.