A
1 only
B
2 only
C
Both 1 and 2
D
Neither 1 nor 2
Correct answer: (b) 2 only
Explanation
Statement 1 is incorrect because OMO bond sales reduce bank liquidity (absorb money from the system), whereas bond purchases inject liquidity. Statement 2 is correct as OMO bond sales absorb persistent banking surplus liquidity and tighten short-term interest rates.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
-
2022 · Q101 · UPPGS
Medical students of India were brought to India from Ukraine by Indian Government under which of the following operations? -
2024 · Q145 · UPPGS
With reference to the “National Intellectual Property Rights Policy” consider the following statements: 1. It reiterates India's commitment to Doha Development Agenda and the TRIPS agreement. 2. Department of Industrial Policy and Promotion is the nodal agency for regulating Intellectual Property Rights in India. Which of the above statements is/are correct? Select the correct answer from the code given below: -
2022 · Q76 · UPPGS
Given below are two statements, one is labelled as Assertion (A) : and the other as Reason (R). Assertion (A): A solution of table salt in a glass of water is homegeneous. Reason (R): A solution having different composition throughout is homogengeous. Select the correct answer from the code given below: -
2018 · Q79 · UPPGS
The Supreme Court's judgment regarding homosexuality is related to which of the following?