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Write Short Note On: Open Market Operations (Omo) - Economics

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प्रश्न

Write short note on:

Open Market Operations (OMO) 

संक्षेप में उत्तर

उत्तर

Open Market Operations refer to the buying and selling of government securities. These securities can be bought or sold to the public or to the commercial banks in an open market. Open Market Operations are used by the Central Bank to affect money supply in the economy. The selling of securities by the RBI will wipe out the extra cash balance from the economy, thereby limiting the money supply, whereas in the case of buying securities by RBI, additional money is pumped into the economy stimulating money supply.

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Central Bank Function - Goverment Bank
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अध्याय 13: Central Banking - Exercise 3 [पृष्ठ १२२]

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मायकल वाझ Economics [English] 12 Standard HSC
अध्याय 13 Central Banking
Exercise 3 | Q 2.7 | पृष्ठ १२२
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