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What does the open market operation of the RBI mean ?
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- Buying and selling shares
- Auctioning of foreign exchange
- Trading is securities
- Transactions in gold
- Buying and selling shares
Correct Option: C
Open Market Operations (OMO) is 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. Purchases inject money into the banking system and stimulate growth while sales of securities do the opposite.
