When Central Bank buys securities, this agreement of purchase also has specification about date and price of the resale, it is called:
When Central Bank buys securities, this agreement of purchase also has specification about date and price of the resale, it is called:
Solution
✅ Correct Option: 2
When the central bank purchases securities under an agreement that specifies the date and price at which the securities will be resold, it is a repurchase agreement, known as a Repo open market operation. An outright (output) OMO has no such resale specification. CRR and reverse repo rate are unrelated concepts.
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