Question

     Which of the following statements is/are correct about

    Open Market Operations? I.            It refers to the mechanism through which RBI purchases and sells government securities in the form of bills and bonds to the banks as well as financial institutions. II.            It is mandatory for a bank to buy government securities through OMO.
    A I only Correct Answer Incorrect Answer
    B II only Correct Answer Incorrect Answer
    C Both are correct Correct Answer Incorrect Answer
    D None of these Correct Answer Incorrect Answer

    Solution

    Explanation: It is Not mandatory for the bank to buy government securities through OMO.

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