Which are the following statements are true:

(A) Open Market Operations refers to buying and selling of bonds issued by the Government in the open market.
(B) Currency notes and coins are called fiat money.
(C) M2 and M4 are known as broad money.
(D) M1 and M2 are known as narrow money.

Choose the correct answer from the options given below:

(A), (B) and (D) only

The correct answer is Option (1) → (A), (B) and (D) only

(A) Open Market Operations refers to buying and selling of bonds issued by the Government in the open market. True. Open Market Operations (OMO) are conducted by the Reserve Bank of India (RBI) to control liquidity and credit in the economy through buying or selling government securities (bonds) in the open market.
(B) Currency notes and coins are called fiat money. True. Fiat money is the legal tender issued by the government or central bank that has no intrinsic value but is accepted by law as a medium of exchange — like currency notes and coins.
(C) M2 and M4 are known as broad money. False. M3 and M4 are broad money.
(D) M1 and M2 are known as narrow money. True.