Which action does the central bank perform during Open Market Operations (OMO) to introduce high-powered money into the economy?

CA Foundation · Business Economics · PYQS · January 2026
Which action does the central bank perform during Open Market Operations (OMO) to introduce high-powered money into the economy?
(A) A. Purchase of government securities
(B) B. Sale of corporate bonds
(C) C. Printing additional currency
(D) D. Raising interest rates

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Purchase of government securities

Topics: Money Market

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