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Buying and selling of government bonds by the RBI in the open market is called:

AMoral suasion policy
BBank rate adjustment
CMargin requirement rule
DOpen market operations
Answer & Solution
Correct answer: D. Open market operations
1. The RBI acts on behalf of the government. 2. These are open market operations. 3. They are outright or repo. _Source: syllabus Introductory Macroeconomics, Chapter 3, Money and Banking._
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