Open Market Operations refer to: MCQ with Answer and Explanation

Open Market Operations refer to:
A. lending by commercial banks to customers
B. issue of new currency notes
C. sale and purchase of government securities by the RBI
D. trading in stock exchanges
Answer: Option C
Solution (By JKSSB Mock Tests)
Open Market Operations are the sale and purchase of government securities by the RBI to regulate liquidity.

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Practice More Economy Set 1 Questions

Question #1
The term 'Capital Formation' is essential for economic growth because it:
A. Only increases consumption
B. Reduces the productive capacity of the economy
C. Has no relation to productivity
D. Increases the stock of productive assets

Correct Answer: Option D


Explanation:
Capital formation involves net addition to the stock of capital goods, which enhances the productive capacity of the economy and supports long-term growth.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'G20' comprises how many members?
A. 20 countries
B. 19 countries plus EU
C. 22 countries
D. 24 countries

Correct Answer: Option B


Explanation:
G20 comprises 19 countries and the European Union.

This question belongs to: Economy GK Economy Set 1
Question #3
The term 'Financial Inclusion' primarily aims at:
A. Restricting credit to priority sectors
B. Ensuring access to financial services for all sections of society at affordable cost
C. Providing banking services only to high-income groups
D. Increasing interest rates for small borrowers

Correct Answer: Option B


Explanation:
Financial inclusion seeks to ensure that individuals and businesses, especially the underserved, have access to useful and affordable financial products and services.

This question belongs to: Economy GK Economy Set 1