Question : The last open market operation was done in —
(a) July 2, 2020
(b) June 2,2020
(c) May 2,2020
(d) none of the above
Answer : (a)
Related facts
- The last open market operation was done in July2, 2020.
- The RBI took the decision of open market operation after considering the current liquidity and market situation.
- OMO is abbreviated as Open Market Operations.
- The OMOs are conducted by the RBI in the form of sale and purchase of Government Securities (G-Secs) to adjust liquidity in the market.
- If there is excess liquidity, then RBI undertakes sale of G-Secs and if there is liquidity crunch, then RBI conducts purchase of G-Secs.
- Government Securities : – Government Securities are financial instruments or bonds – securities that are issued at face value by Central Government for raising a loan from public.
- The Government Securities are issued to finance important projects and manage budget deficits. The Government securities can be:
Bearer Bonds
Promissory Notes
Bonds in Bond Ledger Account
Treasury Bills
Cash Management Bills
State Development Loans
By — Pankaj Pandey.
Link:
https://m.rbi.org.in//Scripts/BS_PressReleaseDisplay.aspx?prid=50012