What do you understand by Open Market Operations of the Reserve Bank of India?

1. In this Reserve Bank purchases and sells government securities in the open market in order to influence the volume of money and credit in the economy.

2. It does change the total stock of government securities and change the proportion held by the RBI, commercial and cooperative banks.

Select the correct answer using the code given below: -

1
1 only
2
2 only
3
Both 1 and 2
4
Neither 1 nor 2

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