Consider the following statements with respect to the Open Market Operations (OMO) by the Reserve Bank of India (RBI) :
1. It is one of the major monetary tools to influence the money supply in the market.
2. Purchase of bonds through an OMO reduces the price of bonds.
3. In case of an inflationary situation, RBI purchases government securities to control the money supply.
Which of the statements given above is/are correct?
1
1 and 2 only
2
1 only
3
1 and 3 only
4
2 and 3 only