In the context of Indian economy, 'Open Market Operations' refers to

1. Open Market Operations (OMO) are a key tool used by the central bank (RBI in the context of the Indian economy) to manage the money supply and influence interest rates. 2. OMO refers to the buying and selling of government securities (like Treasury Bills and government bonds) by the central bank in the open market. 3. When the RBI purchases government securities, it injects liquidity (money) into the banking system, increasing the money supply and potentially lowering interest rates (an expansionary move). 4. When the RBI sells government securities, it withdraws liquidity from the banking system, reducing the money supply and potentially raising interest rates (a contractionary move). 5. Option (A) refers to borrowing under facilities like the Repo rate or MSF. Option (B) describes the general lending activity of commercial banks. Option (C) accurately defines Open Market Operations.