Which monetary tool is used to check temporary liquidity mismatches in the market due to foreign capital flow?

CA Foundation · Business Economics · PYQS · September 2025
Which monetary tool is used to check temporary liquidity mismatches in the market due to foreign capital flow?
(A) A. Cash Reserve Ratio (CRR)
(B) B. Statutory Liquidity Ratio (SLR)
(C) C. Open Market Operations (OMO)
(D) D. Marginal Standing Facility (MSF)

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Open Market Operations (OMO)

Topics: Money Market

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