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Outright purchase or sale of government securities by RBI to manage durable liquidity is called:
ABank rate publication
BOpen market operations
CReverse repo auctions
DMarginal standing facility
Answer & 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)._
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