Buying and selling of government securities by the Reserve Bank of India to the public is called:
Answer & explanation
Correct answer: option 3
Open market operations: It refer to the sale and purchase of government securities in open by the Central Bank.
Repo rate: The rate of interest charged by the central bank to commercial banks for a short period.
Bank Rate: Bank rate is the lending rate at which commercial banks can borrow from the RBI without providing any security.
Margin requirement: Margin requirement is the difference between the market value of security offered by the borrower against the loan amount granted.