The term 'Open Market Operations' refer to: MCQ with Answer and Explanation

The term 'Open Market Operations' refer to:
A. Issuing new shares by companies
B. Lending by commercial banks to the public
C. Buying and selling of government securities by the central bank
D. Buying and selling of goods in the open market by the government
Answer: Option C
Solution (By JKSSB Mock Tests)
Open Market Operations involve the purchase and sale of government securities by the central bank to regulate liquidity and money supply in the economy.

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Practice More Economy Set 1 Questions

Question #1
A proportional tax is one where:
A. the tax rate falls with income
B. only high incomes are taxed
C. the average tax rate is constant across income levels
D. the tax rate rises with income

Correct Answer: Option C


Explanation:
A proportional tax applies the same tax rate to all income levels.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a characteristic of the Indian planning experience?
A. Exclusive reliance on market forces without any state role
B. Complete abandonment of growth objectives
C. Evolution from centralised planning to indicative planning and cooperative federalism
D. Only focus on industrialisation without social objectives

Correct Answer: Option C


Explanation:
Indian planning evolved from the centralised Five Year Plans of the Planning Commission era to a more indicative and cooperative federal approach under NITI Aayog.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Immediate Payment Service' is an interbank electronic fund transfer service available:
A. only at branches
B. only during banking hours
C. 24x7
D. only on weekdays

Correct Answer: Option C


Explanation:
IMPS is available 24x7 for instant interbank fund transfers.

This question belongs to: Economy GK Economy Set 1