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  9. Q33

KPSC KAS 2020 · Question 33 of 100

Open Market operation refers to _____ .

Economics - Monetary Policy

  1. AThe act of RBI selling or buying government bonds from the commercial banksCorrect
  2. BThe act of SEBI selling or buying government bonds
  3. CBuying and selling of products in Open Market
  4. DNone of the above

Answer: A. The act of RBI selling or buying government bonds from the commercial banks

Explanation

Open market operations are the RBI's purchase and sale of government securities to regulate liquidity.

Source: KPSC Gazetted Probationers Prelims Paper-I 24-08-2020 (Subject Code 388), Official Key Chart Series A

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