When Central Bank buys securities without any promise to sell them later, it is known as?
When Central Bank buys securities without any promise to sell them later, it is known as?
Solution
✅ Correct Option: 2
An outright (output) open market operation is one where the central bank purchases securities permanently, without any commitment to resell them later. A repo OMO, in contrast, involves a repurchase agreement. Margin requirement and reverse repo rate are different monetary tools.
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