InvestorQ : discuss the open market operations a nd how monetary authority used it to control money supply in economy
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discuss the open market operations a nd how monetary authority used it to control money supply in economy

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Deepa Salunkhe answered.
1 month ago
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Open market operations or OMO is when the government buys and sells government securities in the market to either infuse liquidity or absorb liquidity. Currently, the government is infusing liquidity by purchasing bonds like what the US Fed is also doing.

You can visit the RBI website and access their White Paper section for more details on this subject.

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