________ refer to central bank purchases or sales of government securities in order to expand or contract money in the banking system and influence interest rates.

Question

Question

This question was previously asked in

RRB NTPC CBT 2 (Level-2) Official Paper (Held On: 16 June 2022 Shift 3)

Answer 1

The correct answer is open market operations.

Key Points

Open market operations refer to central bank purchases or sales of government securities in order to expand or contract money in the banking system and influence interest rates.
It comes under macroeconomics.
OMO is an activity by a central bank to give liquidity in its currency to a bank or a group of banks.
The central bank gives money as a deposit for a defined period.
The usual aim of OMO is following:
- To manipulate the short-term rate.
- Indirectly the total money supply.
- Expanding money or contracting the money supply.

Additional Information

With a closed market order, the insider is buying or selling shares at a price above or below the market and directly from and to the company rather than openly in the market.
The domestic and foreign market in a given country. That is, the national market describes the supply and demand for all securities that are traded in a country. Each national market is governed by the regulations of its country.
An international market is defined geographically as a market outside the international borders of a company's country of citizenship.