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Which one of the following is not an instrument of Fiscal policy?
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- Open Market Operations
- Taxation
- Public borrowing
- Public expenditure
- Open Market Operations
Correct Option: A
Open market operations (OMO) refers to the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system. A central bank (Reserve Bank of India) uses OMO as the primary means of implementing monetary policy.
