Consider the statements about Open Market Operations (OMO);

(A) OMO is a tool by which the Reserve Bank of India (RBI) controls money supply.
(B) OMO is an example of Qualitative Control.
(C) Selling bonds through RBI reduces the money supply.
(D) Outright OMOs are permanent in nature.

Choose the correct answer from the options given below:

Only (A), (C), (D)

The correct answer is Option (3) → Only (A), (C), (D)

(A) OMO is a tool by which the Reserve Bank of India (RBI) controls money supply. Correct. Open Market Operations are used by the RBI to regulate liquidity by buying or selling government securities in the open market.

(B) OMO is an example of Qualitative Control. Incorrect. OMO is a quantitative tool of monetary policy. It controls the overall money supply rather than influencing credit allocation to specific sectors.

(C) Selling bonds through RBI reduces the money supply. Correct. When the RBI sells bonds, it absorbs money from the banking system, reducing the money supply.

(D) Outright OMOs are permanent in nature. Correct. Outright OMOs involve a permanent sale or purchase of securities, as opposed to temporary operations like repos or reverse repos.