Outright purchase or sale of government securities by RBI to manage durable liquidity is called:
- Bank rate publication
- Open market operations
- Reverse repo auctions
- Marginal standing facility
Show answer and solution
Correct answer: B. Open market operations
1. RBI buys or sells G-secs outright.
2. This injects or absorbs durable liquidity.
3. These are OMOs.
_Source: Reserve Bank of India, Monetary Policy function overview (rbi.org.in)._