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Topic Open market operations
Asked 3 times in CSE over 30 years (1993–2023), peaking in 2013.
Key insights
- Most tested in CSE — 3 of 3 PYQs
- Most asked in 2013
- Recurs across 3 years (1993–2023)
Across exams
CSE · 3How the concept evolved
Long-running — most appearances (2 of 3) predate 2016, and it still returns.
Related concepts
Ideas UPSC tests alongside this one — keep exploring.
Sample questions
You've seen the pattern — here are a few of the actual PYQs.
CSE2023
Which one of the following activities of the Reserve Bank of India is considered to be part of 'sterilization'?
- A Conducting 'Open Market Operations' ✓
- B Oversight of settlement and payment systems
- C Debt and cash management for the Central and State Governments
- D Regulating the functions of Non-banking Financial Institutions
✓ Correct answer: (A)
Economy › Money/Banking/Finance
CSE2013
In the context of Indian economy, 'Open Market Operations' refers to
- A borrowing by scheduled banks from the RBI
- B lending by commercial banks to industry and trade
- C purchase and sale of government securities by the RBI ✓
- D None of the above
✓ Correct answer: (C)
Economy › Money/Banking/Finance
CSE1993
Variable reserve rates and Open Market Operations are instruments of
- A Fiscal Policy
- B Monetary Policy ✓
- C Budgetary Policy
- D Trade Policy
✓ Correct answer: (B)
Economy › Money/Banking/Finance
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