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Instruments of Monetary Policy and RBI Part 5
You said" Govt will sell the bonds to Central bank and in return bank will purchase the bonds and give money to Govt. This is Deficient Financing. But in OMO: Open Market operation , you said Central Govt will purchase the bonds from RBI. Could you please clarify ?
Mohini Jain
a year ago
Manohar.. Basically.. OMO refers to buying and selling of government bonds.. OMO is method of deficit financing...