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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